What late payment fee does Cinnaholic charge for overdue payments?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
s or contributions required to be paid to Franchisor or any Advertising Cooperative hereunder must be paid by automated bank draft or other reasonable means necessary to ensure payment of such fees are received by Franchisor or the appropriate Advertising Cooperative. Franchisee agrees to comply with Franchisor's payment instructions.
- 5.4. Late Payments and Insufficient Funds. All overdue payments for Royalty Fees, Advertising Fees and other fees required to be paid hereunder shall bear interest from the date due at the rate specified by Franchisor from time to time, up to the highest rate permitted by the law, but in no event shall such rate exceed 18% per annum. Interest shall accrue on all late payments regardless of whether Franchisor exercises its right to terminate this Agreement as provided for herein. In addition to its right to charge interest as provided herein, Franchisor may charge Franchisee a $100.00 late payment fee for all s
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, if a franchisee makes a late payment, Cinnaholic may charge a $100 late payment fee for all overdue payments. Additionally, if a payment is not honored by the franchisee's bank, such as with a check or automated bank draft, Cinnaholic may charge a $100 insufficient funds fee for each instance.
Interest will also accrue on all late payments from the date the payment was due. This interest rate is determined by Cinnaholic but cannot exceed the highest rate permitted by law, with a maximum of 18% per annum. This interest applies regardless of whether Cinnaholic chooses to terminate the Franchise Agreement due to the late payment.
Cinnaholic also has the right to set off any amounts the franchisee owes against any amounts Cinnaholic may owe the franchisee. This means that if Cinnaholic owes the franchisee money for any reason, they can deduct any outstanding debts the franchisee has with them before making the payment.