What is the late payment penalty 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, a franchisee will incur a late payment penalty of 5% of the late amount. This penalty is due upon payment of the late amount and applies to all late payments, including interest. This means that if a franchisee is late on any payment owed to Creative World School, they will be charged an additional 5% of the overdue amount as a penalty.
This late payment penalty is in addition to any interest charged on overdue amounts. The FDD states that interest is applied at the lesser of 18% per year or the highest contract rate of interest allowed by law, and is payable on all overdue amounts 15 days after billing. Therefore, franchisees need to be aware that late payments can result in both interest charges and a separate late payment penalty, increasing the overall cost of being late on payments.
Many franchise systems have late payment penalties, so this is not unusual. However, prospective Creative World School franchisees should ensure they understand all payment deadlines and plan their finances accordingly to avoid these additional costs. It would be prudent to clarify with Creative World School the specific procedures for late payment notifications and the potential for waiving penalties in extenuating circumstances.