What is the interest rate charged on late payments to City Publications?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
business in the state where the Franchised Business is located. Franchisee is responsible to pay the print tax where applicable.
H. Late Payments
All Royalty, Appointment Services, Graphics, Printing Brokerage, and Mailing List Rental Fee payments, and postage expenses, payments due for purchases by Franchisee from Franchisor or any Affiliate and other payments due Franchisor, that are not received by Franchisor within five (5) days after the due date, shall bear interest at the highest applicable rate permitted by law not to exceed one and one-half percent (1.5%) per month and each late payment shall also be assessed a late fee of One Hundred Dollars ($100.00). Franchisee acknowledges that this Section 4.J. shall not constitute an agreement by Franchisor or any Affiliate to accept any payments after they are due or a commitment by Franchisor to extend credit to, or otherwise finance the operation of the Franchised Business. Further, Franchi
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, late payments are subject to an interest charge. Specifically, if payments for Royalty Fees, Appointment Services, Graphics, Printing Brokerage, Mailing List Rental Fees, postage expenses, payments for franchisee purchases from City Publications or its affiliates, and any other payments due to City Publications are not received within five days of the due date, they will incur interest.
The interest rate applied to these late payments is the highest rate permitted by law, but it will not exceed 1.5% per month. In addition to the interest, City Publications also assesses a late fee of $100 for each late payment.
The FDD clarifies that this late payment policy does not obligate City Publications or its affiliates to accept payments after they are due, nor does it represent a commitment to extend credit or finance the franchisee's business operations. Furthermore, failure to pay amounts when due can be grounds for termination of the franchise agreement.