At what interest rate will Clear Pest Pros impose interest on late payments?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
Additionally, interest will be imposed at the rate of 18% per annum or the maximum rate permitted by applicable law, whichever is greater, from the date these amounts were originally due until the date paid ("Interest Fee"). If we debit your account for monies owed and there are insufficient funds available, we will also charge our current non-sufficient fund fee ("NSF Fee"). We can automatically debit your account for the Late Payment Fee, NSF Fee, Late Report Fee, Interest Fees and all other fees owed to us.
Source: Item 22 — CONTRACTS (FDD pages 67–68)
What This Means (2025 FDD)
According to Clear Pest Pros' 2025 Franchise Disclosure Document, if a franchisee fails to make timely payments, interest will be charged at a rate of 18% per annum. However, the FDD specifies that if the maximum interest rate permitted by applicable law is greater than 18%, then that higher rate will be applied instead. This interest accrues from the original due date until the payment is made.
In addition to interest, Clear Pest Pros also imposes a late payment fee. This fee is the greater of 5% of the amount due or $50 per week for each week the payment is overdue. Franchisees are also responsible for non-sufficient fund fees if a payment debit is rejected due to insufficient funds in their account.
These financial penalties highlight the importance of franchisees managing their cash flow effectively and adhering to the payment terms outlined in the franchise agreement. Prospective franchisees should be aware of these potential costs and factor them into their financial planning to avoid incurring unnecessary expenses.