What is the interest rate charged on overdue amounts owed to Creative World School?
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 Creative World School's 2025 Franchise Disclosure Document, overdue amounts are subject to interest. The interest charged is the lesser of 18% per year or the highest contract rate of interest allowed by law. This interest applies to all overdue amounts and is due 15 days after billing.
In practical terms, this means that if a Creative World School franchisee fails to pay fees or other amounts owed to the franchisor on time, they will incur interest charges. The specific interest rate will depend on the legal limits in their jurisdiction, but it will not exceed 18% annually. Franchisees should be aware of this policy and ensure timely payments to avoid these additional costs.
It is also important to note that in addition to interest, Creative World School also charges late payment penalties of 5% of the late amount. This penalty is applied to all late payments, including any accrued interest. Therefore, franchisees need to factor in both the interest and the late payment penalties when assessing the financial consequences of delayed payments.