What is the maximum interest rate Chicken Guy can charge on overdue payments?

According to Chicken Guy's 2025 Franchise Disclosure Document, if a franchisee fails to make payments by the due date, Chicken Guy can charge interest on the overdue amount. This interest accrues from the date the payment was due until it is fully paid. The interest rate will be the maximum rate permitted for this type of debt in the state where the franchised restaurant is located. However, the interest rate cannot exceed 1.5% per month, or a portion of a month.

For a prospective Chicken Guy franchisee, this means that managing cash flow and ensuring timely payments is crucial to avoid incurring interest charges. The specific maximum rate will depend on state law, but the 1.5% monthly cap provides a clear upper limit. Franchisees should be aware of this potential cost and factor it into their financial planning.

It's important to note that this interest charge is in addition to any other remedies and rights Chicken Guy has under the Franchise Agreement or applicable law. This underscores the importance of adhering to the payment terms outlined in the agreement. Franchisees should consult with legal and financial advisors to fully understand their obligations and the potential consequences of late payments.