When is the late payment fee due for a Creative World School franchise?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
- 6.10 Late Payment Penalties.
All Royalties, Advertising Contributions, Painting Fee, Decorator Fee, amounts due for purchases by you from us, and any interest accrued thereon, and any other amounts which you owe us, or our affiliates, are subject to a late payment fee of 5% of the amount due.
The late payment fee is due immediately on any delinquent payments.
The provision in this Agreement concerning late payment fees does not mean that we accept or condone late payments, nor does it indicate that we are willing to extend credit to, or otherwise finance the operation of, your School.
- 6.11 Application of Payments.
Notwithstanding any designation you might make, we may apply any of your payments to any of your past due indebtedness to us.
You acknowledge and agree that we have the right to set off any amounts you or your owners owe us against any amounts we might owe you or your owners.
Source: Item 23 — RECEIPTS (FDD pages 80–247)
What This Means (2025 FDD)
According to the 2025 Creative World School Franchise Disclosure Document, if a franchisee's payments are delinquent, a late payment fee is due immediately. The late fee is 5% of the amount that is overdue. This applies to all royalties, advertising contributions, painting fees, decorator fees, amounts due for purchases from Creative World School, any interest accrued, and any other amounts owed to Creative World School or its affiliates.
Creative World School also charges interest on all overdue amounts. Interest accrues from the due date at an annual rate of 18%, or the highest contract rate of interest permitted by law, whichever is less. The Franchise Agreement specifies that Creative World School is not obligated to accept late payments or extend credit to franchisees.
It is important to note that failure to pay all amounts when due constitutes grounds for termination of the Franchise Agreement. Creative World School retains the right to apply any payments received to any past due debts, regardless of any designation the franchisee might make. Creative World School also has the right to offset any amounts owed by the franchisee or their owners against any amounts Creative World School might owe to them.