What is the maximum interest rate that can be charged on overdue payments from Beggars Pizza 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 to SpeedLine are subject to an annual interest rate. This rate is capped at the lower of two figures: either 18% per annum or the maximum interest rate legally permitted. This interest accrues from the payment's original due date until the payment is made in full.
This policy ensures that Beggars Pizza franchisees have a clear understanding of the financial penalties associated with late payments. It also protects SpeedLine by providing a mechanism to recoup losses resulting from delayed payments. The inclusion of a legal maximum rate ensures compliance with applicable laws, which may vary by jurisdiction.
As a prospective franchisee, it is important to be aware of these terms and to manage your finances accordingly to avoid incurring interest charges on overdue payments. Understanding the specific legal rate in your jurisdiction is also advisable to fully grasp the potential financial implications. This information is typically found within the agreement between Beggars Pizza and SpeedLine.