What is the late interest rate that Baymont Inn Suites may charge on overdue fees or charges?
Baymont_Inn_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
- 4.3 Overdue Charges. If any Fees or charges are not received from you by the due date, then, at our sole discretion, (a) such Fees and/or charges may accrue late interest at the rate of 1.5% of the outstanding balance per month, or the maximum rate permitted by law, whichever is lower, from the date such payment was due until the date paid, and/or (b) we may condition future Service Offeringor subscription renewals on payment termsshorter than those specified herein.
Source: Item 22 — CONTRACTS (FDD pages 96–97)
What This Means (2025 FDD)
According to Baymont Inn Suites's 2025 Franchise Disclosure Document, if a franchisee fails to pay fees or charges by the due date, Baymont Inn Suites has the discretion to charge late interest. This late interest accrues at a rate of 1.5% per month on the outstanding balance.
However, the FDD also states that the interest rate charged will not exceed the maximum rate permitted by law. This means that if the legally allowed maximum interest rate in the franchisee's jurisdiction is lower than 1.5% per month, Baymont Inn Suites will only be able to charge the lower, legally permissible rate. The interest is calculated from the original due date until the payment is made.
In addition to late interest, Baymont Inn Suites may also change the payment terms for future service or subscription renewals if fees are overdue. This could mean requiring shorter payment terms than initially agreed upon. Franchisees should be aware of these potential consequences and ensure timely payment of all fees and charges to avoid incurring interest or changes to payment terms.