For Dq Treat locations, what is the interest rate applied to unpaid balances for equipment and services?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
- (f) Payment and Invoice. All amounts for the Purchase Price of the Equipment; cost(s) (if any) of Installation Services, Advance Exchange Services, and On-Site Remedial Maintenance Services (only the first month of such equipment support services, as applicable) set forth in the Sales Order/Purchase Order, shipment (as contemplated by subsection (c) above) and taxes and other fees (as contemplated by subsection (e) above) shall be pre-paid by Participating Location via ACH. No earlier than the date of installation of the Equipment, PAR will issue its invoice indicating pre-payment of all amounts due under these Terms. Any abort, reschedule or cancellation fees will be invoiced separately or refunded to Participation Location as applicable. Ongoing monthly payments for Advance Exchange Services and/or On-Site Remedial Maintenance Services must be made by ACH. All sums not paid when due will accrue interest daily at the lesser of an annual rate of 18% (1.5% per month), or the highest rate permissible by law on the unpaid balance until paid in full.
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 the 2025 Dq Treat Franchise Disclosure Document, any sums not paid when due will accrue interest daily. The interest rate is the lesser of an annual rate of 18% (1.5% per month), or the highest rate permissible by law on the unpaid balance until it is paid in full. This applies to the purchase price of equipment, costs of installation services, advance exchange services, on-site remedial maintenance services (for the first month), shipment, taxes, and other fees.
This means that if a Dq Treat franchisee fails to pay for equipment or services on time, they will be charged interest on the outstanding balance. The interest rate will be 18% per year, which is equivalent to 1.5% per month, unless the highest rate permitted by law is lower than 18%. In that case, the legally permissible rate will be applied. The interest accrues daily, so the longer the balance remains unpaid, the more interest the franchisee will owe.
Franchisees should be aware of these terms and ensure that they pay all invoices on time to avoid incurring interest charges. It is also important to understand what the highest rate permissible by law is in their jurisdiction, as this could be lower than the 18% stated in the FDD. This interest rate is relatively standard within the franchise industry, as it incentivizes prompt payment for services rendered.