What is the late fee charged by Crown Gold Exchange if a payment is not made on time?
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 Crown Gold Exchange's 2024 Franchise Disclosure Document, if a franchisee fails to make a payment on time, they will incur a late fee of $100. In addition to the late fee, Crown Gold Exchange will charge interest on the unpaid amount at a rate of 18% per year. However, if this interest rate exceeds the maximum allowed by law, the interest will be charged at the highest rate legally permissible.
This policy is fairly standard in franchising, as franchisors need to ensure timely payments to maintain their own financial obligations and support the franchise system. The late fee and interest serve as an incentive for franchisees to adhere to the payment schedule outlined in the franchise agreement.
For a prospective Crown Gold Exchange franchisee, this means it's crucial to manage finances carefully and ensure all payments to the franchisor are made on time to avoid these additional charges. Understanding the payment terms and potential penalties for late payments is an important aspect of financial planning for the franchise.