When does the interest on late payments to Cream begin to accrue?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks 1, 2 |
|---|---|---|---|
| Interest on Late Payment | Lesser of 1.5% per month or the highest commercial contract rate allowed by law | As incurred | All amounts which you owe us for any reason will bear interest accruing as of their due dates until payment is received in full. |
Source: Item 6 — OTHER FEES (FDD pages 13–17)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, interest on late payments begins to accrue as of the due date of the unpaid amount. The interest rate is the lesser of 1.5% per month or the highest commercial contract rate allowed by law. This applies to all amounts owed to Cream for any reason.
For a prospective Cream franchisee, this means that any payment not made on time will immediately start incurring interest charges. It is crucial to ensure all payments are made promptly to avoid these additional costs. The interest rate, while capped at 1.5% per month, can still add up significantly over time, especially for larger outstanding balances.
Many franchise agreements include provisions for late payment interest, but the specific rates and terms can vary. Cream's approach of charging interest from the due date is fairly standard. Franchisees should be aware of these terms and factor them into their financial planning to maintain a healthy relationship with the franchisor and avoid unnecessary expenses.