When does interest start accruing on overdue payments to Engineering For Kids?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
Fee/Interest on Late Payments and Reports. If you do not make any payment or submit any report when due to us, you must pay us (in addition to the overdue amount) the greater of (a) a late fee of $25, or (b) interest on the overdue amount from the date. Interest starts to accrue when your payment was initially due. Interest rates will not exceed any maximum rate that may be imposed under applicable law. We also can apply any of your payments to any past due indebtedness of yours in
Source: Item 6 — OTHER FEES (FDD pages 10–15)
What This Means (2025 FDD)
According to the 2025 Engineering For Kids Franchise Disclosure Document, interest on overdue payments starts accruing from the original due date of the payment. In addition to the overdue amount, Engineering For Kids franchisees must pay either a $25 late fee or interest on the overdue amount, whichever is greater. The interest rates will not exceed the maximum rate imposed by applicable law.
Engineering For Kids can also apply any payments made by the franchisee to any past due debts in the amounts and order that Engineering For Kids determines. This means that if a franchisee has multiple outstanding debts, Engineering For Kids has the discretion to decide which debts are paid off first.
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. Franchisees should be aware of these terms and ensure they make payments on time to avoid incurring additional fees and interest charges. It is also important to understand how Engineering For Kids applies payments to outstanding debts to manage financial obligations effectively.