Is there a limit to the insufficient funds fee Desi District can charge?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
te equal to 18% per year (or,
if such payment exceeds the maximum allowed by law, then interest at the highest rate allowed by law).
- (d) Insufficient Funds. Desi District Fr
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, Desi District may charge franchisees a $30 fee for any payment returned due to insufficient funds. However, this fee is capped at the maximum amount allowed by law if the legal maximum is less than $30.
This means that if state or local laws specify a maximum insufficient funds fee lower than $30, Desi District will adhere to that lower limit. It is important for prospective franchisees to be aware of the insufficient funds fee and to ensure they have sufficient funds available when making payments to Desi District to avoid incurring this charge.
Franchisees should familiarize themselves with local regulations regarding maximum allowable fees to understand their rights and obligations fully. This policy ensures that Desi District remains compliant with applicable laws while also providing a mechanism to cover the administrative costs associated with handling returned payments.