What is the interest rate Card My Yard charges on delinquent amounts?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
| Marketing | Currently $0. If | If implemented, we will | businesses that are located in your Cooperative territory, such company owned Card My Yard businesses will NOT have voting power to increase your required Cooperative contributions. All or a portion of your contributions to a Cooperative may be used to establish and/or maintain a website(s) focused on promoting the Card My Yard Concept in and around your market area. See Note 2 for the definition of Gross |
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| Fund | implemented, an amount equal to the greater of: (a) one-half of one percent (0.5%) of the Card My Yard business' monthly Gross Sales or (b) $25 per month in the first 12 months of your agreement; $40 per month in months 13 through 24; and $65 per month in each 12- month period thereafter. | withhold these funds in the same manner as the royalty payments described above in this Item 6. | Sales. The Marketing Fund contribution is in addition to the local advertising requirement. We may increase the required contribution amount on not less than 30 days' written notice to you (up to a maximum of 2% of Gross Sales, subject to the monthly minimum payments). We may, in our sole discretion, change the frequency of the Marketing Fund Contributions (e.g. change to monthly payments) upon written notice to you. |
| Interest and Late Fees | Interest of 18% per annum or the maximum rate allowed by applicable law, or, at our option, $100 for each failure to timely pay an amount owed under the Franchise Agreement | On demand | We may charge interest or a late fee for any delinquent amounts due under th |
Source: Item 6 — OTHER FEES (FDD pages 15–23)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, if a franchisee fails to make timely payments, Card My Yard may charge interest on the delinquent amount. The interest rate is 18% per annum, or the maximum rate allowed by applicable law. Alternatively, Card My Yard has the option to charge a flat fee of $100 for each instance of failing to pay on time.
This means that prospective Card My Yard franchisees need to be aware of the potential costs associated with late payments. They should ensure they have sufficient cash flow to cover all payments due to Card My Yard under the Franchise Agreement.
The franchisor has the discretion to choose between charging interest or a flat fee, which could depend on the size of the outstanding balance and the applicable laws in the franchisee's jurisdiction. Franchisees should familiarize themselves with the specific laws in their area to understand the maximum interest rate that can be legally charged.