When is the Interest fee due for a Casa De Corazon franchise?

According to Casa De Corazon's 2025 Franchise Disclosure Document, an interest fee is charged on all overdue amounts. This interest fee is the lesser of 1.5% per month or the highest rate of interest allowed by applicable law. The interest fee is due as incurred, meaning it becomes payable as soon as an amount is overdue.

For a prospective Casa De Corazon franchisee, this means that if any payments to the franchisor are not made on time, interest charges will immediately apply. It is crucial to manage finances carefully and ensure all payments, such as royalty fees, technology fees, or product purchases, are made promptly to avoid incurring these interest charges. The 'as incurred' due date indicates that there is no grace period, and interest starts accruing from the moment a payment is late.

Franchisors commonly charge interest on overdue amounts to encourage timely payments and to compensate for the administrative burden and potential financial losses caused by late payments. The specific interest rate charged by Casa De Corazon is within the typical range seen in franchise agreements. Franchisees should be aware of all payment deadlines and ensure they have sufficient funds available to meet these obligations to avoid these additional costs.

Casa De Corazon also has the right to debit a franchisee's account for 110% of the fees transferred from the account for the last reporting period if the franchisee has not timely reported the Gross Revenue, or withholds access to accounting or financial systems or data used to determine Gross Revenue. This is in addition to any other rights Casa De Corazon may have under the Franchise Agreement.