What is the interest rate charged on Advertising Fees not paid by a Carbones Pizzeria franchisee as required?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
- e. Advertising Fees not paid by Franchisee as required herein shall bear interest at the rate of one and a half percent (1.5%) per month, provided, however, that in no event shall the rate of interest payable by Franchisee on any unpaid balance under this Agreement exceed the maximum legal rate under applicable law.
Source: Item 23 — RECEIPTS (FDD pages 30–116)
What This Means (2025 FDD)
According to the 2025 Carbones Pizzeria Franchise Disclosure Document, if a franchisee fails to pay their Advertising Fees as required, the unpaid amount will accrue interest. The interest rate is set at one and a half percent (1.5%) per month. However, the agreement specifies a condition that the interest rate charged on any unpaid balance will not exceed the maximum legal rate allowed by applicable law.
This means that while Carbones Pizzeria sets a default interest rate of 1.5% per month on overdue advertising fees, this rate is subject to any state or local laws that may impose a lower maximum interest rate. It is the franchisee's responsibility to be aware of the laws in their jurisdiction that could affect the interest charged on late payments.
For a prospective Carbones Pizzeria franchisee, this highlights the importance of paying Advertising Fees on time to avoid incurring interest charges. Additionally, it is crucial to understand the legal limitations on interest rates within their specific state or locality, as these laws will supersede the rate specified in the franchise agreement if they are lower.