What is the late fee charged by Deka Lash for payments that are 7 days or more past due?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
fer fee if the owners of this Agreement transfer this Agreement into an entity owned by the same owners with the same ownership percentages.
- 4.18 Renewal Fee. You must pay to us a renewal fee of $3,500 to enter into a new franchise agreement to continue your rights as a franchisee for an additional term.
- 4.19 Interest
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, if a franchisee's payment is 7 days or more past due, Deka Lash charges a late fee of $100 per occurrence. Additionally, any amounts owed to Deka Lash that are more than 30 days past due incur interest at a rate of 18% per year, compounded daily, or the maximum rate permitted by law if lower, retroactive to day one.
This policy highlights the importance of timely payments to Deka Lash. Franchisees should ensure they have sufficient funds and efficient payment processes to avoid these charges. The $100 late fee for payments over 7 days late can add up quickly if late payments become a recurring issue.
The 18% annual interest on amounts over 30 days past due is a significant penalty. This high interest rate could substantially increase the amount owed to Deka Lash, making it more difficult for franchisees to catch up on payments. Franchisees should prioritize resolving any payment issues promptly to avoid accruing this interest.
Many franchisors charge late fees and interest on overdue amounts, but the specific amounts and terms can vary. Prospective Deka Lash franchisees should carefully consider these payment terms and ensure they are prepared to meet their financial obligations to avoid these penalties.