When does the interest charge stop accruing on overdue payments 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 Agreement, except if the lateness is the result of Franchisor's failure to debit Franchisee's account in a timely manner.
- 5.5.4 Franchisor's acceptance of any interest payment cannot be construed as a waiver of its rights in respect of the default giving rise to such payment and is without prejudice to any right by Franchisor's to terminate this Agreement.
- 5.5.5 Franchisee acknowledges that the electronic receipts generated from the ACH transactions listed herein are the only documents that will be generated for the transactions made under this Agreement and that they will not be accompanied by individual invoices from Franchisor. Franchisee agrees that such receipts are sufficient documentation of transactions, and that pa
Source: Item 22 — CONTRACTS (FDD page 36)
What This Means (2025 FDD)
According to Canine Dimensions' 2025 Franchise Disclosure Document, interest charges on overdue payments will accrue from the date the payment was due until the date Canine Dimensions actually receives the payment. To encourage franchisees to make timely payments, Canine Dimensions charges a $45 fee for any ACH transfer that is returned by the bank.
Interest on overdue amounts will be charged at a rate equal to the lesser of 1.5% per month or the highest rate permitted by law. This interest charge is designed to cover the costs and expenses Canine Dimensions incurs while handling and processing late payments.
It is important to note that Canine Dimensions' acceptance of any interest payment does not waive its rights regarding the default that led to the payment. Canine Dimensions still retains the right to terminate the Franchise Agreement, regardless of whether interest payments have been made. Franchisees should ensure that all payments are made on time to avoid these charges and potential breaches of the agreement.
Franchisees should be aware that Canine Dimensions will only provide electronic receipts for ACH transactions and will not issue individual invoices. These electronic receipts are considered sufficient documentation for transactions, and Canine Dimensions will not generate IRS form 1099 for payments made under the agreement.