What is the interest rate applied to unpaid amounts owed by a Crown Gold Exchange franchisee?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
chisee acknowledges that Crown Gold Franchising has the right to remotely access Franchisee's point-of-sale system to calculate Gross Sales.
- (c) Late Fees and Interest. If Franchisee does not make a payment on time, Franchisee shall pay a $100 "late fee" plus interest on the unpaid amoun
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to the 2024 Franchise Disclosure Document, Crown Gold Exchange franchisees who do not make payments on time will incur interest on the unpaid amount. The interest rate is set at 18% per year. However, if this rate exceeds the maximum interest rate allowed by law, the interest will be charged at the highest rate legally permissible.
In addition to interest, Crown Gold Exchange also charges a $100 late fee for overdue payments. This late fee is separate from the interest charged on the outstanding balance. The combination of a late fee and interest aims to incentivize timely payments from franchisees.
Prospective Crown Gold Exchange franchisees should be aware of these financial penalties for late payments and factor them into their financial planning. Understanding these terms is crucial for maintaining a healthy financial relationship with the franchisor and avoiding unnecessary costs.