What is the interest rate charged by Carvel 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 past due Billable Support Fees. 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 that is permitted by applicable law.
Billable Support Fees are due within thirty days of the franchisee being invoiced by Carvel. If a franchisee fails to pay when due, it constitutes a default under the agreement if not cured within ten days of written notice.
This interest charge is in addition to any administrative fees Carvel may charge for insufficient funds in the franchisee's designated bank account. Franchisees are responsible for maintaining sufficient funds in their account to cover all Comprehensive Support Fees.