What is the 'Default Interest' related to late payments to Bor Restoration?

According to the 2024 Bor Restoration Franchise Disclosure Document, "Default Interest" is the interest rate charged on late payments, underreported Gross Sales, or as otherwise described in the Franchise Agreement, compounded monthly. Bor Restoration can change the Default Interest rate at any time, providing at least 60 days' prior written notice. However, any change to the Default Interest rate will not violate the applicable laws of the franchisee's state.

This means that if a Bor Restoration franchisee is late on payments, underreports gross sales, or breaches the agreement in a way that triggers default interest, they will be subject to an interest charge on the overdue amount. The interest is compounded monthly, which means it's calculated on the principal amount plus the accumulated interest.

It is important to note that while Bor Restoration can adjust the default interest rate, they must provide franchisees with a 60-day written notice before implementing any changes. This allows franchisees time to adjust their financial planning accordingly. Furthermore, the interest rate must comply with the applicable laws of the franchisee's state, ensuring that it does not exceed any legal limits on interest rates. Franchisees should be aware of these terms and conditions to avoid incurring additional costs due to late payments or underreporting.