What is the annual interest rate charged by Care Plus Medical Ucc on unpaid amounts?
Care_Plus_Medical_Ucc Franchise · 2024 FDDAnswer from 2024 FDD Document
ee acknowledges that Care Plus Medical UCC has the right to remotely access Franchisee's point-of-sale system to calculate Gross Sales.
- (c) Late Fees and Interest. If Franchisee does not make a payment on time, Franchisee shall pay a $100 "late fee" plus interest on the unpaid amount at a rate equal to 18% per year (or, if such payment exceeds the maximum allowed by law, then interest at the highest rate allowed by law).
- (d) Insufficient Funds. Care Plus Medical UCC may charge $
Source: Item 22 — CONTRACTS (FDD page 41)
What This Means (2024 FDD)
According to Care Plus Medical Ucc's 2024 Franchise Disclosure Document, if a franchisee fails to make payments on time, Care Plus Medical Ucc will charge interest on the unpaid amount. The annual interest rate is 18%, but if this rate exceeds the maximum allowed by law, the interest rate will be the highest rate legally permitted.
In addition to interest, Care Plus Medical Ucc also charges a $100 late fee for overdue payments. Furthermore, if a payment is returned due to insufficient funds, Care Plus Medical Ucc may impose a $30 fee, or the maximum fee allowed by law if the $30 exceeds legal limits.
These late payment terms are fairly standard in franchising. Franchisees should be aware of these potential costs and ensure timely payments to avoid incurring these charges. It is important to note that the interest rate may be adjusted to comply with applicable laws, which could affect the actual amount charged.