What interest rate does Carvel charge on past due Billable Support Fees?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
Billable Support Fees shall be paid by Franchisee within thirty (30) days of being invoiced by Company.
Franchisee must pay Company interest on any amounts past due at the rate of 1.5% per month or portion of month, but not more than the maximum interest rate permitted by applicable law.
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, franchisees must pay interest on any Billable Support Fees not paid on time. The interest rate is 1.5% per month or any portion of a month that the payment is late. However, the interest rate will not exceed the maximum interest rate permitted by applicable law.
Billable Support Fees are due within thirty days of the franchisee receiving the invoice from Carvel. This means a franchisee has a 30-day window to remit payment before interest charges begin to accrue.
It is important for prospective Carvel franchisees to understand these payment terms and ensure they have sufficient cash flow to cover these fees within the specified timeframe to avoid incurring interest charges. Franchisees should also be aware of the maximum interest rate permitted by applicable law in their jurisdiction, as this may be lower than the 1.5% per month specified by Carvel.