What interest rate will Clean Your Dirty Face charge on late payments?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
All amounts that you owe us for any reason will bear interest accruing as of their original due date at one- and one-half percent (1.5%) per month or the highest commercial contract interest rate the law allows, whichever is less. We may debit your bank account automatically for service charges and interest. You acknowledge that this Section 3.C is not our agreement to accept any payments after they are due or our commitment to extend credit to you, or finance the operation of your Business.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to Clean Your Dirty Face's 2025 Franchise Disclosure Document, any amounts owed to the franchisor will incur interest from the original due date. The interest rate is set at one and one-half percent (1.5%) per month, or the highest commercial contract interest rate allowed by law, whichever is less.
This means a Clean Your Dirty Face franchisee will be charged interest on any late payments. The 1.5% monthly interest translates to an annual interest rate of 18%, which is a significant penalty for overdue amounts. The clause specifying "the highest commercial contract interest rate the law allows" protects Clean Your Dirty Face in case 1.5% exceeds the legal limit in a particular jurisdiction.
Clean Your Dirty Face also has the right to automatically debit the franchisee's bank account for these service charges and interest. The agreement clarifies that charging interest on late payments does not obligate Clean Your Dirty Face to accept late payments or extend credit to the franchisee, emphasizing the importance of timely payments.