When does interest begin to accrue on overdue amounts owed to Delta Hotels By Marriott?
Delta_Hotels_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE | AMOUNT | DUE DATE* | REMARKS |
|---|---|---|---|
| Interest on Overdue Amounts | Lesser of 18% per year or maximum interest rate permitted by law | On demand | Interest accrues from the due date until the overdue amount is paid. |
Source: Item 1 — Fees for Other Services (FDD pages 39–71)
What This Means (2025 FDD)
According to Delta Hotels By Marriott's 2025 Franchise Disclosure Document, interest on overdue amounts accrues from the due date until the overdue amount is paid. The interest rate is the lesser of 18% per year or the maximum interest rate permitted by law. This fee is payable on demand.
For a prospective Delta Hotels By Marriott franchisee, this means that if any payment is not made by its due date, interest charges will immediately begin to accumulate. The 18% annual interest rate, while potentially capped by law, is a significant cost that could quickly increase the amount owed. Franchisees should ensure timely payments to avoid these charges.
It is common practice for franchisors to charge interest on overdue amounts to encourage timely payments and to compensate for the administrative costs and potential financial losses associated with collecting late payments. Delta Hotels By Marriott's policy aligns with this practice, but franchisees should be aware of the specific interest rate and ensure they understand the due dates for all fees to avoid incurring these charges.