From what date does interest accrue on overdue amounts owed to Canine Dimensions?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
following week. - 5.5.2.2 Debit Franchisee's account a non-refundable late reporting fee of forty-
five dollars ($45.00).
- 5.5.3 To encourage prompt and timely payment of the Royalty Fees and to cover the costs and expenses involved in handling and processing any payments not received by their due dates, Franchisee shall pay a fee of $45.00 for any ACH transfer that is returned by the bank, and shall also pay, upon demand, interest on any overdue amount equal to the lesser of: (i) one and one-half percent (1.5%) per month; or (ii) the highest rate permitted by law. Such charge shall accrue from the date payment was due until the date payment is actually received by Franchisor. Each failure by Franchisee to report its Gross Sales to Franchisor, or to pay the Royalty Fees or other payments payable to Franchisor when due, will be a material breach of this
Source: Item 22 — CONTRACTS (FDD page 36)
What This Means (2025 FDD)
According to Canine Dimensions's 2025 Franchise Disclosure Document, interest on any overdue amount accrues from the date the payment was originally due until the date Canine Dimensions actually receives the payment.
The interest charged on overdue amounts will be the lesser of 1.5% per month or the highest rate permitted by law. Franchisees will also be charged a $45 fee for any ACH transfer that is returned by the bank.
It's important to note that consistent failure to report gross sales or pay fees on time constitutes a material breach of the Franchise Agreement, potentially leading to termination, unless the delay is due to Canine Dimensions's failure to debit the franchisee's account in a timely manner. Canine Dimensions's acceptance of interest payments does not waive their rights regarding the initial default.