What is the 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 $100 "late fee" plus interest on the unpaid amount at a rate equal to 18% per year (or, if such payment exceeds the maximum allowed by law, then interest at the highest rate allowed by law).
- (d) Insufficient Funds. Crave Cookies Franchising may charge $30 for any payment returned for insufficient funds (or, if such amount exceeds the maximum allowed by law, then the fee allowed by law)
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 charged will be the highest rate legally permitted.
This policy encourages franchisees to prioritize timely payments to avoid additional costs. The $100 late fee and 18% annual interest can quickly add up, especially on larger outstanding balances. Franchisees should be aware of their payment obligations and due dates to prevent these charges.
It is important to note that the interest rate may be adjusted to comply with applicable laws, ensuring that Crave Cookies does not charge interest rates that are legally prohibited. This protects both the franchisor and franchisee by adhering to legal standards. Franchisees should familiarize themselves with local laws regarding interest rates to understand their rights and obligations fully.
In addition to the late fee and interest, the franchisee is responsible for covering any costs Crave Cookies incurs while attempting to collect overdue payments, including reasonable attorney fees. This further emphasizes the importance of on-time payments to avoid accumulating additional financial burdens.