Is the $100 violation fee charged by Cinch I.T. considered interest?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
of the Franchised Business. Any acceptance of an amount which is less than the full amount due shall not be considered a waiver of Our right to (or Your obligation for) the full amount then due, or which may become due in the future.
- (i) In addition to Our other rights and remedies, We may charge You a fee of One Hundred Dollars ($100.00) per violation by You of any term or condition of
Source: Item 23 — RECEIPTS (FDD pages 60–269)
What This Means (2024 FDD)
According to Cinch I.T.'s 2024 Franchise Disclosure Document, the $100 violation fee is not considered interest. The document states that Cinch I.T. may charge a fee of $100 per violation of any term or condition of the agreement.
This fee is intended to reimburse Cinch I.T. for their expenses and compensate them for their inconvenience. The FDD explicitly states that these late fees do not constitute interest.
This clarification is important for prospective franchisees as it distinguishes the violation fee from interest charges, which may be subject to different legal and accounting treatments. Franchisees should be aware of the terms and conditions of the agreement to avoid incurring these violation fees.