Is there a maximum interest rate that Carbones Pizzeria can charge on unpaid Advertising Fees?
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, unpaid Advertising Fees accrue interest at a rate of 1.5% per month. However, this interest rate is capped.
The agreement specifies that the interest rate on any unpaid balance, including Advertising Fees, will not exceed the maximum legal rate permitted by applicable law. This means that while Carbones Pizzeria sets a default interest rate, the actual rate charged to the franchisee will be the lower of 1.5% per month or the highest rate legally allowed in the franchisee's jurisdiction.
This provision protects the franchisee from potentially excessive interest charges if state laws mandate a lower maximum rate. Prospective Carbones Pizzeria franchisees should be aware of the interest rate regulations in their specific state to understand the potential maximum interest they could be charged on overdue Advertising Fees.