What is the maximum interest rate Caring Transitions can charge on sums paid on behalf of the franchisee?

According to Caring Transitions' 2025 Franchise Disclosure Document, payments not received within thirty days of the due date will incur interest. The interest rate is set at 18% per annum, or the highest rate allowed by law, whichever is lower. This interest accrues from the original due date until the payment is received by Caring Transitions, irrespective of any subordinate agreements that might postpone the payment.

This late payment policy applies to various fees, including royalties, national branding fees, and payments for goods or services provided by Caring Transitions or its affiliates. In addition to the interest, franchisees may also be subject to a late fee of $100.00 or 10% of the amount due, whichever is greater, if the payment is not received within five days of the due date.

For a prospective Caring Transitions franchisee, it's crucial to manage payments diligently to avoid these additional costs. The 18% interest rate, while potentially standard, can significantly increase the financial burden if payments are consistently late. Franchisees should ensure they understand the due dates for all fees and set up systems to facilitate timely payments to Caring Transitions.