What is the interest rate charged by Crawlspace Medic on late or underpaid amounts?
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, if a franchisee fails to make payments or underpays, Crawlspace Medic charges interest. The interest rate is 1.5% per month, or the highest rate allowed by law. This interest accrues from the date of nonpayment or underpayment.
In addition to interest, Crawlspace Medic may also charge a late fee of $100 if the franchisee fails to pay the Continuing Royalty Fee or Brand Fund Fee, or if the franchisee fails to submit their Gross Revenue report when due. This late fee is charged for each late submission, in addition to the aforementioned interest charges.
This policy means that franchisees must prioritize timely and accurate payments to Crawlspace Medic to avoid incurring these additional costs. Franchisees should be aware of the due dates for all fees and reports to prevent late charges and interest from accumulating. It is also important to note that the interest rate could fluctuate depending on state laws, so franchisees should understand the legal limits on interest rates in their specific jurisdiction.