What is the late fee for failing to pay amounts owed to Crisp & Green when due?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
Crisp & Go Location fee is due upon our approval of you to operate a Crisp & Go Location. The Crisp & Go Location fee is fully earned by us upon payment and is non-refundable.
- 6.05 Interest On Late Payments; Late Fee. A late fee of $50 will be imposed upon you for each instance in which you fail to pay any amount owed to us when due. All amounts which you owe us or any of our Affiliates, shall bear interest after their due date at the highest contract rate of interest permitted by law, not to exc
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, a franchisee will be charged a $50 late fee for each instance in which they fail to pay any amount owed to Crisp & Green when due. Additionally, all outstanding amounts owed to Crisp & Green or its affiliates will accrue interest after the due date. This interest will be calculated at the highest contract rate permitted by law, but will not exceed 1.5% per month.
This policy means that franchisees must prioritize timely payments to Crisp & Green to avoid incurring these additional costs. The $50 late fee, while seemingly small, can add up quickly if payments are consistently late. The 1.5% monthly interest charge on overdue amounts can also significantly increase the total amount owed over time.
Furthermore, the FDD states that failure to pay all amounts when due constitutes grounds for termination of the Franchise Agreement. This underscores the importance of adhering to the payment schedule outlined in the agreement. Franchisees should ensure they have sufficient funds available and a reliable payment system in place to avoid late payments and potential termination of their franchise agreement.
It is common practice in the franchise industry for franchisors to impose late fees and interest charges on overdue payments. These measures are in place to encourage timely payments and to compensate the franchisor for the administrative costs and potential financial losses associated with late payments. Franchisees should carefully review the payment terms and late fee policies outlined in the Franchise Agreement to fully understand their obligations and the consequences of non-compliance.