When does Crave charge interest on overdue amounts?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
| (1) | (2) | (3) | (4) |
|---|---|---|---|
| Fees (1) | Amount | Due Date | Remarks |
| Interest | 18% per annum or the highest interest rate allowed by applicable law, whichever is greater | On demand | Interest may be charged on all overdue amounts. Interest accrues from the original due date until payment is received in full. |
Source: Item 6 — OTHER FEES (FDD pages 12–19)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, interest may be charged on all overdue amounts. This interest accrues starting from the original due date until the full payment is received. The interest rate is 18% per annum, or the highest interest rate allowed by applicable law, whichever is greater.
For a prospective Crave franchisee, this means that if any payments to Crave are not made on time, interest charges will immediately begin to accumulate. The interest rate is substantial at 18% annually, so it is crucial to ensure all payments are made promptly to avoid these additional costs. Franchisees should be aware of all due dates and maintain sufficient funds to cover these obligations.
It's also important to note that the interest rate could potentially be higher than 18% if local laws permit a higher rate. This condition underscores the importance of understanding the specific regulations in the franchisee's jurisdiction. This is a fairly standard practice in franchising; however, the specific interest rate can vary among different franchise systems.