What is the interest rate applied to overdue payments from a Beggars Pizza customer to SpeedLine?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
Overdue Payments: All overdue payments by the Customer shall bear interest at the rate of eighteen percent (18%) per annum or the maximum rate of interest permitted by law, whichever is lower, from the due date until paid in full.
Source: Item 23 — RECEIPT (FDD pages 39–192)
What This Means (2025 FDD)
According to the 2025 Beggars Pizza FDD, any overdue payments owed by a customer to SpeedLine will accrue interest. The interest rate applied is either 18% per annum or the maximum interest rate legally permitted, whichever is the lesser amount. The interest accrues from the date the payment was originally due until the payment is made in full.
This means that if a Beggars Pizza franchisee is late in paying SpeedLine for services, they will incur interest charges on the outstanding balance. The 18% annual interest rate is a significant penalty and could add up quickly, especially for larger overdue amounts. Franchisees should prioritize timely payments to SpeedLine to avoid these charges.
It's important to note that the interest rate is subject to legal limits, so if the maximum legal rate is lower than 18%, that lower rate will apply. This protects the franchisee from being charged an illegally high interest rate. Beggars Pizza franchisees should be aware of the specific payment terms and due dates outlined in their agreement with SpeedLine to avoid triggering these overdue payment penalties.