When does Crawlspace Medic begin charging interest on nonpayment or underpayment?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee 1 | Amount | Due Date | Remarks |
|---|---|---|---|
| Digital Marketing Services Fee | $750 | Monthly, at the same time and in the same manner as the first Continuing Royalty Fee and Brand Development Fund Contribution due for the month. | Payable to us |
| Interest | 1.5% per month or highest rate allowed by law | As Incurred | Interest is paid to us from the date of nonpayment or underpayment. |
| Late Charge | $100 | As incurred | If you fail to pay us the Continuing Royalty Fee, Brand Fund Fee, or if you fail to submit your Gross Revenue report when due, we may charge you $100 for each late submission in addition to interest charges explained below. |
Source: Item 6 — OTHER FEES (FDD pages 10–16)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, interest begins accruing immediately from the date of nonpayment or underpayment. The interest rate is 1.5% per month, or the highest rate allowed by law, and is applied to any unpaid or underpaid amounts.
This means that if a Crawlspace Medic franchisee fails to make a payment on time or underpays any required fees, interest charges will start immediately. The 1.5% monthly interest rate can quickly add up, making it crucial for franchisees to ensure all payments are made accurately and on time to avoid these additional costs. This is a fairly standard practice in franchising, as franchisors need to ensure timely payments to maintain their own financial obligations and support the franchise system.
In addition to interest, Crawlspace Medic also charges a $100 late fee if a franchisee fails to pay the Continuing Royalty Fee, Brand Fund Fee, or submit the Gross Revenue report when due. This late charge is in addition to the interest charges. Therefore, franchisees must prioritize timely and accurate payments and submissions to avoid incurring these extra expenses.