What interest rate applies to payments to Caring Transitions that are more than 30 days late?

According to Caring Transitions' 2025 Franchise Disclosure Document, payments not received within thirty days after the due date will incur interest. The interest rate applied is 18% per annum, or the highest rate allowed by law, whichever is lower. This interest accrues from the original due date until the date Caring Transitions receives the payment.

This late payment interest applies regardless of any subordinate agreement that may be in effect to postpone payment. This means that even if there's an arrangement to delay the payment, the interest will still be calculated from the original due date if the payment is not received within 30 days of that date.

For a prospective Caring Transitions franchisee, this highlights the importance of timely payments to avoid incurring interest charges. It's crucial to manage finances effectively and ensure payments are made promptly to avoid the additional cost of interest, which could impact profitability. Franchisees should also be aware of any applicable state laws that might set a lower maximum interest rate, as Caring Transitions will adhere to the lower of the two rates.