When is the interest on overdue amounts due to Dryer Vent Squad?
Dryer_Vent_Squad Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of (Note 1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Annual Conference Attendance (Note 10) | Our then current conference fee, but not greater than $1,500. Currently not assessed. | When invoiced | Applies to conference fee for an annual System conference. |
| Additional Employee Initial Training | Our then current training fee, currently $500 per person per day | When invoiced and prior to training | Our initial pre-opening training is provided at no additional cost for you or your Managing Owner and one designated manager at no additional charge. This fee applies to additional individuals that we authorize to attend training. You are responsible for all fees, wages, and expenses associated with attendance. |
| Supplemental Training | Our then current daily fee per trainer, plus our expenses. Current rate is $250 per day | On demand | If you request or we require additional training, you must pay our then current trainer fee plus, if applicable, our expenses related to travel and accommodations. |
| Reporting Non- Compliance | $150 per occurrence | 14 days of invoice | Payable for failure to timely submit royalty and other reports required under the Franchise Agreement. |
| Operations Non- Compliance | $450 to $1,000 per occurrence plus costs | 14 days of invoice | Payable for failure to comply with operational standards as required under Franchise Agreement, plus inspection and re-inspection costs incurred by us. |
| Payment Non- Compliance | $150 per occurrence | 14 days of invoice | Payable for failure to comply with payment obligations under Franchise Agreement. |
| NSF Check Fee of Failed Electronic Fund Transfer | 5% of amount or $50, whichever is greater, or maximum fee allowed by law | On demand | Payable if your bank account possesses insufficient funds or fails to process a payment required under Franchise Agreement. |
| Interest | 18% per annum from due date | On demand | Payable on all overdue amounts, fees, charges, and payments due under the Franchise Agreement. Interest rate cannot exceed legal rate allowed by law and may be adjusted to reflect same. |
| Audit | Cost of audit plus expensed incurred | On demand | For costs incurred by us for each financial audit, provided the audit determines underreporting of 2% or greater during any designated period. Includes expenses incurred by us |
Source: Item 6 — OTHER FEES (FDD pages 16–21)
What This Means (2024 FDD)
According to the 2024 Dryer Vent Squad FDD, interest on overdue amounts is payable 'on demand'. This means that Dryer Vent Squad can request payment of the interest at any time after an amount becomes overdue. The interest rate is 18% per annum, but it will be adjusted to reflect the maximum legal rate allowed by law if the legal rate is lower.
This policy is fairly standard in franchising, as franchisors need to ensure timely payments to maintain their own financial stability and provide consistent support to all franchisees. The 'on demand' clause gives Dryer Vent Squad flexibility in managing overdue accounts, allowing them to address late payments promptly.
For a prospective Dryer Vent Squad franchisee, this highlights the importance of managing finances carefully and ensuring all payments are made on time to avoid incurring interest charges. It's also important to understand the specific due dates for all fees and payments outlined in the Franchise Agreement to prevent unintentional late payments and the associated interest penalties.