When is interest due on overdue amounts for a Casiola franchise?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee (Note 1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Interest | 18% per annum from due date | On demand | Payable on all overdue amounts, fees, charges, and payments due to us under the Franchise Agreement. Interest rate cannot exceed legal rate allowed by law and may be adjusted to reflect same. |
Source: Item 6 — OTHER FEES (FDD pages 12–18)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, interest on overdue amounts, fees, charges, and payments is due to Casiola on demand. The interest rate is 18% per annum from the original due date. However, the interest rate cannot exceed the maximum legal rate allowed by law and may be adjusted to reflect the legal limit.
This means that if a Casiola franchisee fails to make payments on time, they will incur interest charges on the outstanding balance. The interest starts accruing from the date the payment was originally due. Casiola has the right to demand immediate payment of the accrued interest at any time.
It is important for prospective Casiola franchisees to understand this policy and ensure they have sufficient financial resources to meet their payment obligations promptly. Failure to do so can result in additional financial burdens due to the accruing interest. Franchisees should also be aware of the legal interest rate limits in their jurisdiction, as Casiola will adjust its interest rate to comply with local laws.