What is the interest rate charged on late Advertising Fee payments for a Carbones Pizzeria franchise?
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 on time, they will incur interest on the outstanding amount. The interest rate is set at one and a half percent (1.5%) per month.
However, the FDD also specifies a condition that could modify this rate. If any applicable state law imposes a maximum legal interest rate that is lower than the 1.5% per month, then the lower interest rate mandated by state law will be applied instead. This provision ensures that Carbones Pizzeria remains compliant with local regulations regarding interest rates.
For a prospective Carbones Pizzeria franchisee, this means it's crucial to be aware of both the franchisor's interest rate policy and the specific usury laws in their state. Failure to pay Advertising Fees promptly can lead to additional costs, but these costs are capped by any relevant state regulations. Franchisees should consult with a legal or financial professional to understand the implications of these policies in their specific location.