What is the late fee charged by Desi District if a franchisee does not make a payment on time?

According to Desi District's 2024 Franchise Disclosure Document, if a franchisee fails to make payments on time, they will incur a late fee of $100. In addition to the late fee, Desi District will charge interest on the unpaid amount. The interest rate is set at 18% per year, but if this rate exceeds the maximum allowed by law, the interest will be charged at the highest rate legally permissible.

This late fee and interest charge apply to any payments the franchisee owes to Desi District. This could include royalty fees, marketing contributions, or any other fees outlined in the franchise agreement. The franchisee is responsible for ensuring timely payments to avoid these additional costs.

Franchisees should be aware of these financial penalties for late payments and ensure they have systems in place to manage their payments effectively. Understanding these terms is crucial for maintaining a healthy financial relationship with Desi District and avoiding unnecessary expenses. It is also common practice in the franchise industry to impose late fees and interest charges to encourage timely payments and cover administrative costs associated with collecting overdue amounts.