What interest rate might Crown Gold Exchange charge on late payments?
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) | |||
| $30 (or, if such | |||
| amount exceeds the | |||
| maximum allowed | |||
| by law, then the | |||
| maximum 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, if a franchisee fails to make a required payment when it is due, Crown Gold Exchange may charge a late fee. This fee includes interest on the unpaid amount at a rate of 18% per year. However, if this rate exceeds the maximum interest rate allowed by law, Crown Gold Exchange will charge the highest interest rate legally permitted.
In addition to the interest charge, Crown Gold Exchange may also impose a flat late fee of $30, but this is also subject to legal limits. If the $30 exceeds the maximum amount allowed by law, then the maximum amount allowed by law will be charged.
This means that franchisees need to be aware of the potential for late payment fees and interest charges if they do not meet their payment obligations on time. It is important to understand the specific laws in their jurisdiction regarding maximum interest rates and late fee amounts to ensure compliance and avoid unexpected costs. Franchisees should maintain open communication with Crown Gold Exchange regarding payment schedules and any potential difficulties in meeting payment deadlines.