What interest rate is applied to unpaid balances for Dryject Non-Compliance Fees?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
d in your Franchise Agreement.
Note 3. Non-Compliance Fee. If you fail to pay your Royalty Service Fee, National Marketing Fund contribution or any amount owing to us or our affiliates (if applicable), by its due date, then you are subject to a Non-Compliance Fee of $100 per incident plus 1½ % interest per month on the unpaid balance or the maximum interest permitted by law if it is lower (in California the highest inter
Source: Item 6 — OTHER FEES (FDD pages 14–18)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, if a franchisee fails to pay their Royalty Service Fee, National Marketing Fund contribution, or any amount owed to Dryject or its affiliates by the due date, they will be subject to a Non-Compliance Fee. This fee consists of $100 per incident, plus interest on the unpaid balance.
The interest rate applied to the unpaid balance is 1½% per month. However, the FDD specifies that if the maximum interest rate permitted by law is lower than 1½% per month, the legal maximum will apply. For example, in California, the highest interest rate allowed by law is 10% annually, which would take precedence over the 1½% monthly rate.
This means that a Dryject franchisee could face significant additional costs for late payments, both in the form of a fixed fee and accruing interest. Franchisees should ensure timely payments to avoid these Non-Compliance Fees and the associated interest charges, keeping in mind that the applicable interest rate may vary depending on state laws.