What interest rate is charged on overdue amounts to Crepe De Licious?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
cooperate with us, to effectuate these means (See Exhibit G of the Franchise Disclosure Document). If any payment is made to us by credit card for any fee required, we may charge a service charge of up to four percent (4%) of the total charge.
- 8.05 Late Fee and NSF Fee. If we do not timely receive any fee or any other amount due to us under this Agreement on or before the applicable due date, you will pay us a late fee equal
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to Crepe De Licious's 2025 Franchise Disclosure Document, if a franchisee fails to make timely payments, they will incur a late fee. This late fee consists of a $100 charge, plus an interest charge. The interest charge is calculated as the lesser of either fifteen percent (15%) per year simple interest on the overdue amount or the highest amount allowed under law. This interest accrues daily until the past due amount is paid in full.
This late fee and interest charge apply to any fee or amount due to Crepe De Licious under the Franchise Agreement. This includes, but is not limited to, royalty fees and advertising fund contributions. The agreement specifies that all Royalty Fees and Advertising Fund Contributions are due by the fifth day of each month.
For a prospective Crepe De Licious franchisee, this means that managing cash flow and ensuring timely payments is crucial to avoid these additional costs. The late fee and interest can add up quickly, especially if the overdue amount is substantial or remains unpaid for an extended period. Franchisees should also be aware of any applicable state laws that may limit the maximum interest rate that can be charged on overdue amounts, as Crepe De Licious will adhere to the lower of the two rates.