What is the due date for the Interest Rate fee for a Chatime franchise?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
| Fee(1) Type of | Amount | Due Date | Remarks |
|---|---|---|---|
| Interest Rate | The lesser of 1.5% per month or the highest rate allowed by law | As invoiced | If you fail to pay us any amount when due, you will pay interest on that amount at the Interest Rate from the time the amount should have been paid until it is paid. Interest accrues daily and may be capitalized by us. |
Source: Item 6 — Other Fees (FDD pages 13–17)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, the Interest Rate fee is due 'As invoiced.' This means that Chatime will send an invoice to the franchisee specifying the amount due and the date by which it must be paid.
The interest rate itself is the lesser of 1.5% per month or the highest rate allowed by law. This interest applies if a franchisee fails to pay any amount owed to Chatime when it is due. The interest accrues daily and may be capitalized by Chatime, meaning the unpaid interest can be added to the principal amount owed, further increasing the debt.
Franchisees should pay close attention to all invoices received from Chatime to avoid incurring interest charges. It is also important to understand the circumstances under which these fees may be charged and to maintain open communication with Chatime regarding any potential payment issues.