What is the late fee for overdue payments to Crisp & Green?
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 overdue amounts will accrue interest at the highest contract rate permitted by law, but not exceeding 1.5% per month.
This late fee and interest policy is fairly standard in franchising. It incentivizes franchisees to make timely payments and compensates the franchisor for the administrative burden and potential cash flow issues caused by late payments. Franchisees should ensure they have systems in place to manage payments effectively to avoid these charges.
It's important to note that failure to pay amounts when due can also constitute grounds for termination of the Franchise Agreement, as stated in Section 14 of the agreement. This highlights the importance of maintaining good financial standing with Crisp & Green to avoid jeopardizing the franchise.