What is the minimum late fee that Endless Summer Sweets may charge?
Endless_Summer_Sweets Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| $100 plus interest on | On demand | We may charge a late fee if you fail to | |
| the unpaid amount at | make a required payment when due. | ||
| a rate equal to 18% | |||
| per year (or, if such | |||
| payment exceeds the | |||
| maximum allowed | |||
| by law, then interest | |||
| at the highest rate | |||
| allowed by law) | |||
| $30 (or, if such | |||
| amount exceeds the | |||
| maximum allowed | |||
| by law, then the | |||
| maximum allowed | |||
| by law) |
Source: Item 6 — Other Fees (FDD pages 7–10)
What This Means (2024 FDD)
According to Endless Summer Sweets's 2024 Franchise Disclosure Document, the minimum late fee is $30, or the maximum amount allowed by law if $30 exceeds the legal limit. Additionally, Endless Summer Sweets may charge interest on the unpaid amount at a rate of 18% per year, or the highest rate allowed by law if 18% exceeds the legal limit.
For a prospective Endless Summer Sweets franchisee, this means that failing to make required payments on time can result in a minimum late fee of $30, in addition to accruing interest on the outstanding balance. It is important to note that the actual late fee and interest rate may vary depending on applicable laws, but the franchisee will be responsible for paying at least $30 or the legally allowed maximum.
Franchisees should ensure they understand the payment schedule and have systems in place to make timely payments to avoid incurring these late fees and interest charges. This is a fairly standard practice in franchising, as franchisors need to ensure they receive payments promptly to maintain their own financial stability and support the franchise system.