Does interest accrue on amounts due to Chem Dry after their due date?
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 the highest applicable legal rate for open account business credit in the state of Borrower's domicile, not to exceed one and one half percent
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem-Dry's 2024 Franchise Disclosure Document, amounts due to Chem-Dry will be subject to interest after their due date. Specifically, all amounts due by a borrower to CDI (Chem-Dry, Inc.) are subject to a one-time late fee of $100.00.
Interest will accrue on any past due amount at the highest applicable legal rate for open account business credit in the franchisee's state of domicile, but will not exceed one and one half percent (1.5%) per month. After the maturity of the Business Note, whether through acceleration or otherwise, Chem-Dry has the right to collect all payments due, and interest will accrue on the principal balance at a rate of 18% per annum.
Additionally, a charge of $40.00 will be assessed for each installment returned unpaid, such as for NSF (non-sufficient funds) or account closure. On default, Chem-Dry may declare all obligations immediately due and payable.