What is the due date for the late fee charged by Crown Gold Exchange?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| $100 plus interest on | On demand | We may charge a late fee if you fail to | |
| the unpaid amount at | make a required payment when due. | ||
| a rate equal to 18% | |||
| per year (or, if such | |||
| payment exceeds the | |||
| maximum allowed | |||
| by law, then interest | |||
| at the highest rate | |||
| allowed by law) |
Source: Item 6 — OTHER FEES (FDD pages 10–12)
What This Means (2024 FDD)
According to Crown Gold Exchange's 2024 Franchise Disclosure Document, a late fee may be charged if a franchisee fails to make a required payment when it is due. The amount of the late fee is $100, plus interest on the unpaid amount at a rate of 18% per year, or the maximum rate allowed by law if that is lower. The due date for the late fee is on demand.
This means that if a Crown Gold Exchange franchisee misses a payment, they will be charged a late fee of $100, in addition to accruing interest on the outstanding balance. The interest rate will be 18% annually, unless state law mandates a lower maximum interest rate, in which case the legal maximum will apply.
The fact that the late fee is due "on demand" means that Crown Gold Exchange can request immediate payment of the late fee and accrued interest at any time after the original payment due date has passed. This differs from some franchise agreements that might specify a grace period or a fixed date for late fee payment.
Prospective franchisees should be aware of this policy and ensure they have sufficient financial resources to make all payments on time to avoid incurring these late fees and interest charges. It would be prudent to discuss with Crown Gold Exchange what triggers the "on demand" request for payment and whether there are any typical grace periods before a late fee is assessed.