What is the maximum service charge for non-sufficient funds checks under Minnesota Statute 604.113, as it applies to Casiola franchise fees?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
HIS STATE WHICH IS SUBJECT TO REGISTRATION WITHOUT FIRST PROVIDING TO THE PROSPECTIVE FRANCHISEE, AT LEAST SEVEN DAYS PRIOR TO THE EXE
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, for franchisees operating in Minnesota, the maximum service charge for non-sufficient funds checks is governed by Minnesota Statute 604.113. This statute puts a cap of $30 on such service charges related to franchise fees.
This means that if a Casiola franchisee in Minnesota pays any fees to Casiola via a check that is returned due to non-sufficient funds, the maximum amount that Casiola can charge as a service fee for the returned check is $30. This is a specific protection afforded to franchisees in Minnesota under state law.
Prospective franchisees should be aware of this limit, as it protects them from excessive fees in the event of a payment issue. It is important to note that this cap applies specifically to service charges for non-sufficient funds checks and may not cover other types of late payment fees or penalties.