What is the late payment fee for Cinnaholic?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Interest and Late Payment Fees | Up to the highest rate permitted by law but no more than 18% per annum plus $100 per occurrence | Immediately on demand | Payable on all overdue amounts. Interest begins from the date of non-payment or underpayment. |
Source: Item 6 — OTHER FEES (FDD pages 13–17)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, franchisees may incur interest and late payment fees on overdue amounts. These fees can be up to the highest rate permitted by law, but will not exceed 18% per annum, and include a $100 charge per occurrence. Interest accrues from the initial date of non-payment or underpayment. This fee is payable immediately on demand.
In practice, this means that if a Cinnaholic franchisee fails to make a payment on time, they will be charged interest on the overdue amount, potentially up to an 18% annual rate, in addition to a flat $100 late fee. This could significantly increase the amount owed, especially if the payment is delayed for an extended period. Franchisees should prioritize timely payments to avoid these charges.
It is common practice in the franchise industry to charge interest and late fees on overdue amounts. The specific rates and amounts can vary between franchise systems, so prospective franchisees should carefully review the FDD to understand the potential costs of late payments. Cinnaholic's late fee structure, with a maximum interest rate of 18% and a $100 per occurrence charge, is within the typical range seen in other franchise agreements.