What is the late fee for overdue payments to Caring Transitions or the Fund?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
s after Franchisee's receipt of written notice thereof.
- 5.3 Late Payment. Franchisee shall pay (to Franchisor or to the Fund, as the case may be) a late fee of $100.00 or 10% of the amount due, whichever is greater, on any payment (including, without limitation, amounts due for Royalties, National Branding Fees, or goods or services provided by the Fund, by Franchisor or any affiliate of Franchisor) that is not received by Franchisor within five days after the due date. Franchisee shall pay to Franchisor a late fee of $100 for any Revenue Report, tax return, or other Business Record that is not received by Franchisor within five days after the due date. Any payments that are not received by Franchisor within thirty days after its due date shall bear interest at the rate of 18% per annum, or the highest rate allowed by law, whichever is lower, from the date payment is due to the date payment is received by Franchisor, regardless of any subordinate agreement that may be in effect to postpone payment.
- 5.4 Gross Receipts.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 41–49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, if a franchisee fails to make timely payments to Caring Transitions or to the Fund, they will incur a late fee. This late fee is calculated as the greater of $100.00 or 10% of the overdue amount. This applies to various payments, including royalties, national branding fees, and payments for goods or services provided by Caring Transitions, the Fund, or their affiliates. The payment is considered late if it is not received within five days of the due date.
In addition to the late fee, any payments not received within thirty days of the due date will accrue interest. This interest is charged at a rate of 18% per annum, or the highest rate permitted by law, whichever is lower. The interest is calculated from the original due date until the payment is received by Caring Transitions.
Furthermore, if a franchisee's electronic depository transfer (EDT) payment is denied due to insufficient funds or account closure, Caring Transitions will impose additional charges. These include a $50 charge-back fee and reimbursement for all bank and transaction charges incurred by Caring Transitions as a result of the charge-back. The franchisee will also be responsible for paying interest on the unpaid amount, retroactive to the fifth day of the month in which the payment was originally due. These financial penalties highlight the importance of franchisees maintaining sufficient funds in their EDT accounts and ensuring timely payments to avoid these additional costs.