What is the late charge for overdue payments under the Crowne Plaza dispensing equipment lease?

According to Crowne Plaza's 2025 Franchise Disclosure Document, if a customer fails to pay the rent or any other amount required by the lease within 10 days of its due date, Crowne Plaza will charge a late fee. This late charge is equal to five percent (5%) per month of the overdue payment. However, the FDD specifies that the late charge will be the lesser amount if any applicable law entitles Crowne Plaza to receive a smaller amount.

This means that if a Crowne Plaza franchisee is late on their dispensing equipment lease payments, they will incur a monthly late fee of 5% of the overdue amount. It is important to note that this late charge could be lower if local laws dictate a smaller allowable late fee. Franchisees should be aware of these potential charges and ensure timely payments to avoid them.

It's also important for prospective franchisees to understand the full terms and conditions of the equipment lease, including the due dates for payments and any grace periods. Understanding these terms can help franchisees avoid late fees and maintain a positive relationship with Crowne Plaza. Franchisees should consult with legal and financial advisors to fully understand the implications of the lease agreement.