What is the annual interest rate charged on late payments to Crave Cookies Franchising?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
ees after Franchisee reports Gross Sales. Franchisee acknowledges that Crave Cookies Franchising has the right to remotely access Franchisee's point-of-sale system to calculate Gross Sales.
- (c) Late Fees and Interest. If Franchisee does not make a payment on time, Franchisee shall pay a
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies's 2025 Franchise Disclosure Document, if a franchisee fails to make payments on time, they will incur a $100 late fee. In addition to the late fee, Crave Cookies will charge interest on the unpaid amount at a rate of 18% per year. However, if this interest rate exceeds the maximum rate allowed by law, the interest rate will be adjusted to the highest rate legally permitted.
This late fee and interest charge apply to any payment not made on time, which could include royalty fees, marketing fund contributions, or any other amounts owed to Crave Cookies Franchising. The franchisor has the right to apply any payment received from the franchisee to any obligation, in any order they determine, regardless of any designation by the franchisee.
It is important for prospective Crave Cookies franchisees to understand these payment terms and ensure they have sufficient financial resources to meet their obligations to avoid incurring late fees and interest charges. Franchisees should be aware of the weekly gross sales reporting requirements and the potential for estimated fees to be withdrawn if sales are not reported on time.