What is the interest rate charged by Care Plus Medical Ucc on late payments?
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
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, they will incur a $100 late fee. Additionally, Care Plus Medical Ucc will charge interest on the unpaid amount at a rate of 18% per year.
However, the FDD also states that if this interest rate exceeds the maximum rate allowed by law, the interest charged will be the highest rate legally permissible. This provision protects the franchisee from excessively high interest rates that may violate state or federal regulations.
This late fee and interest charge are intended to compensate Care Plus Medical Ucc for the administrative and financial burdens associated with late payments and to incentivize franchisees to maintain timely payments.