What is the maximum interest rate that Brightstar Care can charge on late payments?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as may otherwise be provided in this Agreement, fees and other amounts due under this Agreement must be paid 28 days after the date of our invoice. We or our affiliate will initiate payment on all invoices from your bank account 28 days after the date of the invoice by electronic funds transfer as provided in Section 4.9 above. If any fee or other amount due under this Agreement is not paid when due, you must pay interest on any balance due from the date due until such amount is paid in full at the highest then-applicable legal rate for open account business credit, not to exceed one and one-half percent (1.5%) per month. This charge will accrue whether or not we or you exercise our and your respective rights to terminate this Agreement pursuant to Article 13 hereof.
Source: Item 22 — CONTRACTS (FDD pages 117–118)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, franchisees are required to pay fees and other amounts due under the agreement 28 days after the invoice date. If any amount remains unpaid when due, Brightstar Care can charge interest on the outstanding balance.
The interest will accrue from the date the payment was originally due until the full amount is paid. The interest rate applied will be the highest legal rate applicable for open account business credit at the time of the late payment.
However, the interest rate charged by Brightstar Care cannot exceed one and one-half percent (1.5%) per month. This late payment interest charge applies regardless of whether Brightstar Care or the franchisee exercises their rights to terminate the franchise agreement.