Does the late fee provision permit or excuse late payments to Crepe De Licious?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
100, plus the lesser of the daily equivalent of fifteen percent (15%) per year simple interest or the highest amount allowed under law, on any overdue amount for each day any amount is past due, accruing until the past due amount is paid in full. This provisio
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to Crepe De Licious's 2025 Franchise Disclosure Document, the late fee provision does not permit or excuse late payments. The FDD states explicitly that this is the case. If a payment is not honored for any reason, the franchisee will pay Crepe De Licious an additional fee of $100 to offset bank charges and administrative expenses.
This means that franchisees are responsible for ensuring that all payments are made on time and that sufficient funds are available. The $100 fee is in addition to the original payment owed. This fee covers the costs incurred by Crepe De Licious due to the dishonored payment, such as bank fees and administrative work.
Franchisees should be aware of this policy and take steps to avoid late or dishonored payments. This could include setting up automatic payments or carefully monitoring their bank account balances. Failure to comply with the payment terms outlined in the franchise agreement could result in additional fees and potential breach of contract.