What is the fee charged by Dq Treat for each late report or payment?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
m when due. Licensee is responsible for any penalties, fines or other similar expenses associated with the transfer of funds described in this subparagraph. Company may require Licensee to pay as described in this section, regardless of whether Company imposes the same requirement on other DQ® licensees.
- 9.7 Interest; Late Fees. All amounts owed by Licensee to Company or its affiliates under this agreement will bear interest at the lesser of 18% per annum or the maximum rate of interest permitted by governing law. Company may also charge Licensee a $50 fee for each late report or payment owed to Company under this agreement. This fee is not interest or a penalty, but compensates Company for increased administrative and management costs due to late payment. A payment is late if:
- (A) It is not received by Company on or before
Source: Item 17 — The following paragraph is added to the end of Item 17 of the Disclosure Document: (FDD pages 70–378)
What This Means (2025 FDD)
According to Dq Treat's 2025 Franchise Disclosure Document, if a franchisee submits a late report or payment, Dq Treat may charge a $50 fee. This fee is not considered interest or a penalty. Instead, Dq Treat states that it is to compensate the company for the increased administrative and management costs associated with the late payment.
Payments are considered late if they are not received by the due date, are not honored by the franchisee's bank, or if there are insufficient funds in the franchisee's bank account to cover the payment on or after the due date.
This policy highlights the importance of franchisees maintaining timely and accurate financial reporting and ensuring sufficient funds are available for scheduled payments to avoid incurring additional fees. Franchisees should ensure they understand the specific payment terms and deadlines outlined in their franchise agreement to prevent late payment fees.