Under what circumstances is a payment considered late to Dq Treat?
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, a payment is considered late under the following conditions: if it is not received by Dq Treat on or before the date it is due; if the payment is received by Dq Treat on time but is not honored by the franchisee's bank or financial institution; or if there are insufficient funds in the franchisee's bank account on or after the due date to cover the payment.
If a payment is late, Dq Treat may charge interest on all amounts owed by the franchisee or its affiliates at a rate of the lesser of 18% per annum or the maximum rate permitted by law. In addition to interest, Dq Treat may also charge a $50 fee for each late report or payment. This fee is intended to compensate Dq Treat for the increased administrative and management costs associated with late payments, and is not considered interest or a penalty.
It is important for prospective Dq Treat franchisees to understand these payment terms and ensure they have sufficient funds available to cover all payments by the due date. Franchisees should also be aware of the potential for interest charges and late fees in the event of a late payment. Setting up electronic funds transfer (EFT) can help ensure timely payments and avoid late fees, as Dq Treat requires franchisees to authorize electronic transfers from their bank accounts to cover amounts owed.