What interest rate does Cicis charge on past due amounts?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
G. Past Due Amounts.
You are not entitled to withhold payments due under this Agreement on grounds of our or our affiliates' alleged or actual nonperformance under this Agreement.
Any payment or report not actually received by us on or before such date will be deemed overdue.
Time is of the essence with respect to all payments you are obligated hereunder.
All unpaid obligations under this Agreement will bear interest from the date due until paid at the rate of five percent (5%) per month or the maximum rate allowed by applicable law, whichever is less.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, any payments or reports not received by the due date are considered overdue. Cicis states that time is of the essence with respect to all payments the franchisee is obligated to make under the agreement.
All unpaid obligations bear interest from the date they are due until they are paid. The interest rate applied to these past due amounts is five percent (5%) per month, or the maximum rate allowed by applicable law, whichever is less.
This relatively high interest rate for overdue payments underscores the importance of franchisees managing their cash flow effectively and ensuring timely payments to Cicis to avoid incurring these additional charges. Franchisees should be aware of this policy and factor it into their financial planning.