Does Crepe De Licious apply a finance charge to past due receivables?

According to Crepe De Licious's 2025 Franchise Disclosure Document, the company's policy regarding finance charges on past due accounts receivable is outlined in the summary of significant accounting policies. While trade credit is generally extended on a short-term basis and does not bear interest, Crepe De Licious retains the option to apply a finance charge to accounts receivable that are past due.

This means that if a Crepe De Licious franchisee fails to pay amounts owed to the company on time, they may be subject to a finance charge. The application of this charge is not mandatory, but rather at the discretion of Crepe De Licious. Franchisees should be aware of this potential charge and ensure timely payments to avoid incurring additional costs.

It's important for prospective franchisees to clarify the specific terms and conditions under which finance charges are applied. This includes understanding the interest rate or fee charged on past due amounts, the grace period before a finance charge is applied, and any other relevant policies related to accounts receivable. This information can help franchisees manage their finances effectively and avoid unexpected charges.