What is the interest rate charged on overdue amounts for a Clean Your Dirty Face franchise?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
| NAME OF FEE 1 | AMOUNT | DUE DATE | REMARKS 2 |
|---|---|---|---|
| Interest | Lower of 1.5% per month or highest commercial interest rate allowed by law | As incurred | Due on all overdue amounts and accruing as of the original due date. |
Source: Item 6 — OTHER FEES (FDD pages 11–16)
What This Means (2025 FDD)
According to Clean Your Dirty Face's 2025 Franchise Disclosure Document, if a franchisee has any overdue amounts, they will be charged interest. The interest rate is the lower of 1.5% per month or the highest commercial interest rate allowed by law. This interest begins accruing as of the original due date of the overdue amount.
This means that if a Clean Your Dirty Face franchisee fails to pay fees or other amounts owed to the franchisor on time, they will incur interest charges. The specific rate will depend on the prevailing commercial interest rates, but it will not exceed 1.5% per month. It is important for franchisees to manage their finances carefully and ensure timely payments to avoid these additional costs.
Franchisees should be aware that these interest charges can add up quickly, especially if the overdue amounts are substantial or remain unpaid for an extended period. The fact that interest accrues from the original due date means that there is no grace period, and interest starts accumulating immediately. This policy is fairly standard in franchising, as franchisors rely on timely payments from franchisees to maintain their own financial stability and support the franchise system.