When is the service charge due for an Aw franchise?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE1,3 | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| Service Charge | Greater of $150 or the highest interest rate allowed by law not to exceed 1 ½%. | Upon billing | Payable on all overdue accounts due to us. |
Source: Item 6 — OTHER FEES (FDD pages 13–16)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the service charge is payable upon billing. This charge is applied to all overdue accounts that a franchisee owes to Aw. The service charge will be the greater of $150 or the highest interest rate allowed by law, but it cannot exceed 1 ½%.
This means that if an Aw franchisee fails to pay amounts owed to the company on time, they will incur a service charge. The charge could be a flat $150, or it could be a percentage-based interest charge, depending on which is higher and on local laws. Franchisees should be aware of this policy and ensure timely payments to avoid these additional costs.
Prospective Aw franchisees should factor this potential expense into their financial planning. While the specific amount will depend on the overdue balance and applicable interest rates, understanding the conditions under which this fee is applied is crucial for managing cash flow and maintaining a positive relationship with Aw.