When is interest due on overdue amounts for a Creative World School franchise?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
| Name of Fee(1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Interest | Lesser of 18 % per year or highest contract rate of interest allowed by law | 15 days after billing | Payable on all overdue amounts. |
| Late Payment Penalties | 5% of the late amount | Due on payment of late amount | Payable on all late payments including interest. |
Source: Item 6 — OTHER FEES (FDD pages 15–18)
What This Means (2025 FDD)
According to the 2025 Creative World School Franchise Disclosure Document, interest on overdue amounts is due 15 days after billing. The interest rate is the lesser of 18% per year or the highest contract rate of interest allowed by law. This interest applies to all overdue amounts.
In practical terms, if a Creative World School franchisee fails to pay fees or other amounts owed to the franchisor on time, interest will start accruing. The franchisee will receive a bill, and they have 15 days from the date of the bill to pay the overdue amount plus the accrued interest. The interest rate will either be 18% per year, or a lower rate if the state law dictates a maximum allowable interest rate that is less than 18%.
It is important for prospective Creative World School franchisees to understand that late payments can result in additional charges beyond the original amount owed. In addition to interest, Creative World School also charges late payment penalties of 5% of the late amount, which is due on payment of the late amount, including interest. Franchisees should ensure they have sufficient capital and financial management systems in place to avoid late payments and the associated penalties.