On what amounts does Big Frog Custom T Shirts More charge interest?
Big_Frog_Custom_T_Shirts_More Franchise · 2024 FDDAnswer from 2024 FDD Document
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| Type of Fee(1) | Amount | Due Date | Remarks |
|---|---|---|---|
| hour for additional training) | Manager, if applicable (also defined in Item 15); if additional training is required for new hires, refresher courses, or special events, we may assess a fee. | ||
| Interest | 18% or the highest contract rate of interest permitted by law, whichever is less | On demand | Charged on any late payments of fees, amounts due for product purchases, or any other amounts due us or our affiliates. |
Source: Item 6 — OTHER FEES (FDD pages 9–13)
What This Means (2024 FDD)
According to Big Frog Custom T Shirts More's 2024 Franchise Disclosure Document, interest is charged on any late payments of fees, amounts due for product purchases, or any other amounts due to Big Frog Custom T Shirts More or its affiliates. The interest rate is 18% or the highest contract rate of interest permitted by law, whichever is less.
This means that if a franchisee is late on any payment to Big Frog Custom T Shirts More, whether it's for royalties, marketing fees, product inventory, or any other obligation, they will incur interest charges. The interest rate is substantial at 18%, but it will be lowered if the state law dictates a lower maximum rate.
Prospective franchisees should be aware of this policy and ensure they have sufficient financial planning to make all payments on time to avoid these interest charges. It's also important to understand what constitutes "any other amounts due" to prevent unexpected interest assessments. Franchisees should maintain open communication with Big Frog Custom T Shirts More to clarify any payment obligations and address potential issues promptly.