What is the interest rate charged by Canine Dimensions on overdue amounts?
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
Source: Item 22 — CONTRACTS (FDD page 36)
What This Means (2025 FDD)
According to Canine Dimensions's 2025 Franchise Disclosure Document, if a franchisee fails to make timely payments, they will be charged interest on the overdue amount. The interest rate is the lesser of two options: 1.5% per month, or the highest rate permitted by law. This charge accrues from the original due date until the date Canine Dimensions actually receives the payment.
This policy encourages franchisees to prioritize timely payments to avoid incurring interest charges. Franchisees should be aware of the due dates for all fees and payments to Canine Dimensions to prevent late payments and the resulting interest. It is important to note that the interest rate could vary depending on state laws, with the franchisee potentially being charged a lower rate if the legal maximum is less than 1.5% per month.
Furthermore, the FDD states that Canine Dimensions accepting an interest payment does not waive their rights regarding the initial payment default, including the right to terminate the Franchise Agreement. This means that even if a franchisee pays the overdue amount plus interest, Canine Dimensions still retains the right to take further action if the late payment constitutes a breach of contract. Franchisees should ensure they understand the payment terms and potential consequences of late payments as outlined in the Franchise Agreement.