When does interest on overdue amounts begin to accrue for 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 due on demand.
For a prospective Delta Hotels By Marriott franchisee, this means that if any payments are not made by the specified due date, interest charges will immediately begin to accumulate. The interest rate, while potentially high at 18%, will be adjusted if local laws mandate a lower maximum rate.
It is important for franchisees to maintain timely payments to avoid these interest charges, as they can add up quickly and impact profitability. Franchisees should ensure they understand the due dates for all fees and have systems in place to manage payments effectively. This is a fairly standard practice in franchising, as franchisors need to ensure timely payments to maintain their own financial stability and provide ongoing support to the franchise system.