What is the maximum interest rate Canine Dimensions charges 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' 2025 Franchise Disclosure Document, if a franchisee fails to make timely payments of Royalty Fees or other amounts due, they will be charged interest on the overdue amount. The interest rate will be the lesser of 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 make payments on time. The fee covers the costs Canine Dimensions incurs while handling and processing late payments. Franchisees should be aware that consistent late payments can be considered a material breach of the Franchise Agreement, potentially leading to further action by Canine Dimensions.
It is important to note that Canine Dimensions' acceptance of any interest payment does not waive its rights regarding the default that caused the payment. Canine Dimensions still retains the right to terminate the Franchise Agreement despite accepting the interest payment. Franchisees should prioritize timely payments to avoid these charges and potential breaches of contract.