What is the interest rate applied to unpaid invoices for Basecamp Fitness customers?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
- v. Customer agrees that amounts of any unpaid invoice shall accrue interest at one and one half percent (1.5%) per month or the maximum amount permitted by law, whichever is less.
- vi. Customer shall pay all costs of collection, including reasonable attorney's fees and costs, in the event any invoice requires collection efforts.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 51–55)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, a customer's unpaid invoices will accrue interest. The interest rate is 1.5% per month, or the maximum amount permitted by law, whichever is less. This applies to fees charged by ProVision for services, exclusive of taxes.
This means that if a Basecamp Fitness customer fails to pay their invoice on time, they will be charged interest on the outstanding balance. The 1.5% monthly interest rate can quickly add up, so it's important for customers to pay their invoices promptly. The phrase "or the maximum amount permitted by law, whichever is less" protects the customer from illegally high interest rates, should the state have laws limiting interest charges.
In addition to the interest on unpaid invoices, the customer is responsible for all costs of collection, including reasonable attorney's fees and costs, should Basecamp Fitness need to pursue collection efforts. This further incentivizes timely payments, as the costs associated with late payments can be substantial.