What is the interest rate on late payments owed to Batteries Plus Bulbs?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
All Royalty and Service Fees, national marketing fees (NMF Fees), and other amounts which Franchisee owes to Franchisor or its affiliates will bear interest after the due date at the lesser of: (1) one-and-one-half percent (1½%) per month; or (2) the maximum contract rate of interest permitted by law in the state in which the Store is located.
Source: Item 22 — Contracts (FDD page 80)
What This Means (2025 FDD)
According to the 2025 Batteries Plus Bulbs FDD, franchisees will incur interest on overdue payments. Specifically, all Royalty and Service Fees, national marketing fees (NMF Fees), and any other amounts owed to Batteries Plus Bulbs or its affiliates will accrue interest after the due date.
The interest rate applied will be the lesser of two options: one-and-one-half percent (1½%) per month, or the maximum contract rate of interest permitted by law in the state where the Batteries Plus Bulbs store is located. This means that Batteries Plus Bulbs will charge either 1.5% per month, which is equivalent to 18% annually, or whatever the state law allows as the highest interest rate, whichever is lower.
This policy ensures that Batteries Plus Bulbs is compensated for the time value of money and the administrative costs associated with collecting late payments. It also incentivizes franchisees to make timely payments to avoid incurring additional charges. Franchisees should be aware of these terms and ensure they understand the due dates for all fees to avoid penalties.