Does Crown Gold Exchange specify a maximum interest rate they can 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, they may charge a late fee for required payments not made when due. The interest rate on the unpaid amount will be 18% per year. However, if this rate exceeds the maximum allowed by law, the interest rate will be the highest rate allowed by law.
In addition to interest, Crown Gold Exchange may also charge a late fee of $30. However, similar to the interest rate, if this amount exceeds the maximum allowed by law, the late fee will be the maximum allowed by law.
This means that as a franchisee, you could be subject to an 18% interest rate per year on late payments, but this is capped at the legal maximum. It is important to be aware of these potential fees and ensure timely payments to avoid incurring them.