What is the interest rate charged by Endless Summer Sweets on late payments?
Endless_Summer_Sweets Franchise · 2024 FDDAnswer from 2024 FDD Document
twenty-Five percent (125%) of the last Gross Sales reported to Franchisor. The parties will true-up the actual fees after Franchisee reports Gross Sales. Franchisee acknowledges that Franchisor has the right to remotely access Franchisee's point-ofsale system to calculate Gross Sales
- (c) Late Fees and Interest. If Franchisee d
Source: Item 23 — RECEIPTS (FDD pages 39–125)
What This Means (2024 FDD)
According to Endless Summer Sweets's 2024 Franchise Disclosure Document, if a franchisee fails to make payments on time, they will incur a late fee of $100, in addition to interest on the outstanding balance. The interest rate is set at 18% per year. However, if this rate exceeds the maximum permitted by law, the interest will be charged at the highest legally allowable rate.
In practical terms, this means that franchisees must prioritize timely payments to Endless Summer Sweets to avoid these additional costs. The $100 late fee is a fixed amount, while the interest charge will accrue daily on the unpaid balance, potentially increasing the total amount owed over time. Franchisees should be aware of these financial implications and factor them into their budget and cash flow management.
It's also important to note that these late fees and interest charges are in addition to any other remedies Endless Summer Sweets may have for non-payment, such as pursuing legal action or terminating the franchise agreement. Franchisees should familiarize themselves with the terms of their franchise agreement to fully understand their obligations and the consequences of failing to meet them. Maintaining open communication with Endless Summer Sweets regarding any potential payment issues is advisable to explore possible solutions and avoid further penalties.