What is the interest rate charged on late payments to Caring Senior Service?

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Accepted Answer

| Fee                                                                                                 | Amount                                                                                                                                  | Due Date                     | Remarks                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|-----------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------|------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Franchisee Conference Attendance5 | Currently, \$500 per person for annual owner's conference and \$100 per person for other mandatory training conferences. | Before attendance | We reserve the right to hold periodic meetings or conferences and we may designate such conferences as mandatory for you and certain employees. We may charge and you agree to pay a fee for training materials and conference registration. There is no limit on our right to increase this fee. You also agree to bear the cost for expenses you and your personnel incur in connection with conference attendance, including the cost of travel, lodging, meals, and wages. If you fail to attend the conference, the conference registration fee is still due and payable. |
| The Hub™ Back Office Support Center | \$900/month | Monthly | You must use our centralized back office support center called The Hub™ during your first two full years of operation. No monthly fee will be due for your first three full months in operation. |
| GreatCare® Audit Fee6 | Currently, \$500 for up to three days | When billed | We require that you successfully complete a GreatCare® Audit, as defined in Note 6 below, at least once every 24 months. There is no limit on our right to increase this fee. |
| Transfer Fee | 20% of then-current Franchise Fee | Upon transfer of business | If you are an individual and wish to transfer your franchise to a corporate entity, one time only, for convenience of franchise ownership, we may, in our discretion, waive the transfer fee. |
| Renewal Fee | \$5,000 | At time of renewal | Unlimited 5-year renewal terms. |
| Interest on Late Payments | 1.5% per month or the highest legal contract rate, whichever is less | As incurred | Payable on all amounts owed to us that are not paid by their due dates. Interest accrues from the original due date until payment is received in full. |
| Interest on Late Promissory Note Payments | \$50 | As incurred | Payable if payment is more than five days past due. |
| Administrative Fee for Billing Not Completed in our System for each Bi Weekly Period | \$200 per billing period | As incurred | Payable if you have not completed your bi weekly billing as required in our system to all clients on time for each period. |
| Fee                                                                     | Amount                                                                                                                   | Due Date    | Remarks                                                                                                                                                                                                                                                                                                                                                                                                           |
|-------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------|-------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Audit                                                                   | The cost of the audit (including costs related to travel, lodging, meals and other such related expenses) | As incurred | If an audit of your books is required due to your failure to provide required reports, or if the audit shows an understatement of Gross Billings of 2% or more, you must reimburse the costs of the audit. For any understated amount, you must also pay the understated amount plus interest.                                                                                                  |
| Costs and | Will vary under the | As incurred | Payable upon your failure to comply with |
| Attorneys' Fees | circumstances |  | the Franchise Agreement. |
| Indemnification                                                         | Will vary under the circumstances                                                                                     | As incurred | You must reimburse us if we are held liable for claims arising from your operation of the Caring Senior Service Business.                                                                                                                                                                                                                                                                                |
| Insurance                                                               | Will vary under the circumstances                                                                                     | As incurred | If you fail to maintain the required insurance coverages we may, but are not required to, obtain insurance coverage on your behalf.                                                                                                                                                                                                                                                                      |
| Liquidated | Will vary under the | Upon demand | See Note 4. |
| Damages | circumstances |  |  |
| Remodeling/ Refurbishment of Caring Senior Service Business | Will vary under the circumstances                                                                                     | As incurred | Payable to suppliers. We may require you to remodel and/or refurbish your Caring Senior Service Business to meet our then current image for all Caring Senior Service Businesses in the System. We will not make this request more frequently than every five years, except that we may require remodeling and/or refurbishment if your Caring Senior Service Business is transferred. |
| Management Fee                                                       | Currently, up to 10% of Gross Billings, plus expenses                                                              | If incurred | We may step in and manage your Business in certain circumstances. We will charge a management fee if we manage your Business, and you must reimburse our expenses. This Management Fee is in addition to all other payments due to us under the Franchise Agreement, including Royalty Fees and Marketing Fees. There is no limit on our right to increase this fee.                      |
| Product or Supplier Evaluation                                    | Reimbursement of our costs                                                                                            | On demand   | If you request that we evaluate a proposed new product or supplier for the System. See Item 8                                                                                                                                                                                                                                                                                                               |

Source: Item 6 — OTHER FEES (FDD pages 12–17)

What is the interest rate charged on late payments to Caring Senior Service?

Answer from 2025 FDD Document

What This Means (2025 FDD)

Fee	Amount	Due Date	Remarks
Franchisee Conference Attendance5	Currently, $500 per person for annual owner's conference and $100 per person for other mandatory training conferences.	Before attendance	We reserve the right to hold periodic meetings or conferences and we may designate such conferences as mandatory for you and certain employees. We may charge and you agree to pay a fee for training materials and conference registration. There is no limit on our right to increase this fee. You also agree to bear the cost for expenses you and your personnel incur in connection with conference attendance, including the cost of travel, lodging, meals, and wages. If you fail to attend the conference, the conference registration fee is still due and payable.
The Hub™ Back Office Support Center	$900/month	Monthly	You must use our centralized back office support center called The Hub™ during your first two full years of operation. No monthly fee will be due for your first three full months in operation.
GreatCare® Audit Fee6	Currently, $500 for up to three days	When billed	We require that you successfully complete a GreatCare® Audit, as defined in Note 6 below, at least once every 24 months. There is no limit on our right to increase this fee.
Transfer Fee	20% of then-current Franchise Fee	Upon transfer of business	If you are an individual and wish to transfer your franchise to a corporate entity, one time only, for convenience of franchise ownership, we may, in our discretion, waive the transfer fee.
Renewal Fee	$5,000	At time of renewal	Unlimited 5-year renewal terms.
Interest on Late Payments	1.5% per month or the highest legal contract rate, whichever is less	As incurred	Payable on all amounts owed to us that are not paid by their due dates. Interest accrues from the original due date until payment is received in full.
Interest on Late Promissory Note Payments	$50	As incurred	Payable if payment is more than five days past due.
Administrative Fee for Billing Not Completed in our System for each Bi Weekly Period	$200 per billing period	As incurred	Payable if you have not completed your bi weekly billing as required in our system to all clients on time for each period.
Fee	Amount	Due Date	Remarks
-------------------------------------------------------------------------	--------------------------------------------------------------------------------------------------------------------------	-------------	-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Audit	The cost of the audit (including costs related to travel, lodging, meals and other such related expenses)	As incurred	If an audit of your books is required due to your failure to provide required reports, or if the audit shows an understatement of Gross Billings of 2% or more, you must reimburse the costs of the audit. For any understated amount, you must also pay the understated amount plus interest.
Costs and	Will vary under the	As incurred	Payable upon your failure to comply with
Attorneys' Fees	circumstances		the Franchise Agreement.
Indemnification	Will vary under the circumstances	As incurred	You must reimburse us if we are held liable for claims arising from your operation of the Caring Senior Service Business.
Insurance	Will vary under the circumstances	As incurred	If you fail to maintain the required insurance coverages we may, but are not required to, obtain insurance coverage on your behalf.
Liquidated	Will vary under the	Upon demand	See Note 4.
Damages	circumstances
Remodeling/ Refurbishment of Caring Senior Service Business	Will vary under the circumstances	As incurred	Payable to suppliers. We may require you to remodel and/or refurbish your Caring Senior Service Business to meet our then current image for all Caring Senior Service Businesses in the System. We will not make this request more frequently than every five years, except that we may require remodeling and/or refurbishment if your Caring Senior Service Business is transferred.
Management Fee	Currently, up to 10% of Gross Billings, plus expenses	If incurred	We may step in and manage your Business in certain circumstances. We will charge a management fee if we manage your Business, and you must reimburse our expenses. This Management Fee is in addition to all other payments due to us under the Franchise Agreement, including Royalty Fees and Marketing Fees. There is no limit on our right to increase this fee.
Product or Supplier Evaluation	Reimbursement of our costs	On demand	If you request that we evaluate a proposed new product or supplier for the System. See Item 8