What is the interest rate charged on overdue amounts to Dryer Vent Squad?
Dryer_Vent_Squad Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of (Note 1) | Amount | Due Date | Remarks |
|---|---|---|---|
| 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. |
Source: Item 6 — OTHER FEES (FDD pages 16–21)
What This Means (2024 FDD)
According to the 2024 Dryer Vent Squad Franchise Disclosure Document, overdue amounts are subject to an interest rate. Specifically, Dryer Vent Squad franchisees will incur an interest charge of 18% per annum on all overdue amounts, fees, charges, and payments due under the Franchise Agreement. This interest will be calculated from the original due date until the payment is made.
However, the FDD also states a condition regarding this interest rate. The interest rate cannot exceed the maximum legal rate allowed by law in the franchisee's jurisdiction. Dryer Vent Squad may adjust the interest rate to reflect the legal limit if the standard 18% exceeds it.
This means that while Dryer Vent Squad aims to charge 18% interest on late payments, franchisees will not be subject to rates that violate local laws. It is important for prospective franchisees to understand their local regulations regarding maximum interest rates to ensure they are not overcharged. Paying invoices on time is crucial to avoid these interest charges and maintain a positive financial standing with Dryer Vent Squad.