What is the monthly interest rate charged on late payments to Dog Haus?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
oduct displays, templates and other promotional materials for the Franchised Restaurant at Franchisor's direct costs for the same.
- 4.4 Other Payments. Franchisee shall promptly pay Franchisor and its Affiliates, as applicable, when due without deduction, abatement or offset (i) all amounts advanced by Franchisor or which Franchisor has paid, or for which Franchisor has become obligated to pay on behalf of Franchisee for any reason whatsoever; and (ii) all amounts due to Franchisor or its Affiliates for Dog Haus Branded Products and Dog Haus Proprietary Products sold to Franchisee.
- 4.5 Interest and Charges for Late Payments. If Franchisee fails to pay any amount due to Franchisor under this Agreement by the date payment is due, or if any electronic payment is unpaid because of insufficient funds or otherwise, Franchisee shall additionally be obligated to pay, as a late charge, the sum of $200 for each late payment transaction. Additionally, Franchisee shall
Source: Item 22 — CONTRACTS (FDD page 87)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, if a franchisee fails to pay any amount due to Dog Haus by the date payment is due, or if any electronic payment is unpaid, the franchisee will be obligated to pay a late charge of $200 for each late payment transaction.
In addition to the late charge, Dog Haus will also charge interest on the outstanding amount for each late payment at a rate of 1.5% per month. This interest will be imposed from the date the payment was originally due until the entire sum and late charge are paid in full. However, the interest rate will not exceed the maximum legal rate of interest.
It is important to note that this late payment policy does not obligate Dog Haus to accept late payments or extend credit to the franchisee. Failure to pay all amounts when due constitutes grounds for termination of the Franchise Agreement, regardless of this late payment clause.