Is there a limit to the interest rate Crown Gold Exchange can charge on late payments?
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, there is a limit to the interest rate they can charge on late payments. Specifically, if a franchisee fails to make payments on time, Crown Gold Exchange will charge a $100 late fee.
In addition to the late fee, Crown Gold Exchange can also charge interest on the unpaid amount. The standard interest rate is 18% per year. However, the agreement specifies that if this rate exceeds the maximum interest rate allowed by law, then the interest charged will be at the highest rate legally permissible.
This clause protects the franchisee from potentially exorbitant interest rates that might exceed legal limits. It ensures that while Crown Gold Exchange can charge interest on overdue payments, they must comply with applicable laws regarding maximum interest rates.