Are all amounts due by the Chem Dry borrower to CDI subject to a late fee?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
o the Franchise Agreement associated with this Business Note in full within six (6) months of the date of this Business Note, CDI will discount the total due for the Initial License Fee by ten percent (10%). No prepayments of this Business Note shall affect the obligation of Borrower to make the
payments of installments of the principal and interest required by the first paragraph hereof until this Business Note shall have been paid in full. All amounts due by Borrower to CDI shall be subject to a one-time late fee of $100.00 and bear interest after their due date at t
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, all amounts due from the borrower to CDI (presumably Chem-Dry, Inc.) are subject to a late fee. Specifically, a one-time late fee of $100.00 is applied to any overdue amount.
Additionally, any amounts that are not paid on time will accrue interest. The interest rate is set at the highest applicable legal rate for open account business credit in the borrower's state of domicile, but it will not exceed 1.5% per month.
After the Business Note reaches maturity, whether through acceleration or other means, Chem Dry has the right to collect all outstanding payments. Interest will then accrue on the principal balance at a higher rate of 18% per annum. Furthermore, a $40.00 charge will be assessed for each installment returned unpaid due to reasons such as NSF (non-sufficient funds) or account closure.