What is the maximum interest rate Delta Hotels By Marriott can charge on overdue amounts?

According to Delta Hotels By Marriott's 2025 Franchise Disclosure Document, they can charge interest on overdue amounts. The interest rate is the lesser of 18% per year or the maximum interest rate permitted by law. This interest accrues from the date the payment is due until the overdue amount is fully paid.

For a prospective Delta Hotels By Marriott franchisee, this means that if you fail to make payments on time, you will be charged interest on the outstanding balance. The specific interest rate will depend on the legal limits in your jurisdiction, but it will not exceed 18% per year. This is a fairly standard practice in franchising and other business agreements, as it incentivizes timely payments and compensates the franchisor for the delay in receiving funds.

It is important for franchisees to maintain good financial management practices to avoid incurring these interest charges. Franchisees should also be aware of the due dates for all fees and payments to Delta Hotels By Marriott to prevent any overdue amounts. Understanding the maximum interest rate that can be charged allows franchisees to plan for potential late payment scenarios and their associated costs.