Under what condition will a City Publications franchisee have to pay interest on understated amounts?
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 exce
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, a franchisee will be charged interest on late payments. Specifically, if Royalty, Appointment Services, Graphics, Printing Brokerage, and Mailing List Rental Fee payments, postage expenses, payments for purchases from City Publications or its affiliates, and other payments due to City Publications are not received within five days of the due date, interest will accrue.
The interest rate applied to these late payments will be the highest rate permitted by law, but it will not exceed 1.5% per month. In addition to the interest, City Publications will assess a late fee of $100 for each late payment. This policy encourages franchisees to make timely payments to avoid incurring additional charges.
This type of late payment penalty is a fairly standard practice in franchising. It is designed to protect City Publications' revenue stream and ensure that franchisees meet their financial obligations promptly. Franchisees should be aware of these terms and manage their finances accordingly to avoid these additional costs. Paying attention to due dates and ensuring timely payments is crucial for maintaining a positive financial relationship with City Publications.