What is the annual interest rate charged by Cr3 American Exteriors on overdue amounts?

According to Cr3 American Exteriors' 2025 Franchise Disclosure Document, the interest rate charged on overdue amounts is the lesser of 12% per annum or the maximum rate permitted by law. This means that if a franchisee fails to make timely payments to Cr3 American Exteriors, they will be charged interest on the outstanding balance.

The specific rate applied will depend on the legal limits in the franchisee's jurisdiction, but it will never exceed 12% annually. For example, if the maximum legal interest rate in a particular state is 10%, that lower rate would apply instead of the 12%.

This late fee policy is fairly standard in franchising, as it incentivizes franchisees to manage their finances responsibly and make payments on time. Franchisees should be aware of this policy and factor it into their financial planning to avoid incurring these charges. It's also important to note that this interest charge is in addition to a $50 late fee per month for underreported amounts discovered during an audit.