What is the interest rate Crave charges 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, if a franchisee has any overdue amounts, Crave may charge interest. The interest rate is 18% per annum, or the highest interest rate allowed by applicable law, whichever is greater. This interest accrues from the original due date until the payment is received in full.
This means that if a Crave franchisee fails to pay fees or other amounts owed to Crave on time, they will be subject to a significant interest charge. The 18% annual interest rate is a substantial penalty for late payments. Franchisees need to be aware of this policy and ensure timely payments to avoid these charges.
It is also important to note that the interest rate could be even higher than 18% if local laws permit a higher rate. Franchisees should familiarize themselves with the applicable laws in their jurisdiction to understand the potential maximum interest rate that could be applied to overdue amounts. This is a fairly standard practice in franchising, as franchisors need to ensure they receive payments in a timely manner to maintain their own financial stability.