What interest fee may Craters & Freighters subject late royalty payments to per month?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
Accounts and Notes Receivable
Accounts and notes receivable consist of current and past due franchise support fees and royalties. Late payments may be subjected to a one and a half percent interest fee per month on the total amount of late royalty payment. The Company received interest from royalty payments totaling $3,424 and $2,604 for the years ended Decembe
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, late payments of franchise support fees and royalties may incur a one and a half percent interest fee per month on the total amount of the late royalty payment.
For a prospective Craters & Freighters franchisee, this means that if royalty payments are not made on time, the franchisee could be charged an additional 1.5% interest on the overdue amount each month until the balance is settled. This can significantly increase the amount owed over time if late payments persist.
It is important to note that Craters & Freighters received interest from royalty payments totaling $3,424 and $2,604 for the years ended December 31, 2024 and 2023, respectively, indicating that some franchisees have been subject to these late fees. Franchisees should prioritize timely payments to avoid these additional costs and maintain a good financial standing with the franchisor.