What is the monthly interest rate charged by Eos Worldwide on overdue payments?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
fees relating to the processing of your failed payment. In the event of a failure of your payment method, we may take reasonable steps to retry your payment method, or we may contact you to reconfirm or update your payment method. This fee is in addition to interest on any overdue amount, as described in Section 4.12 below. You are responsible for any other penalties, fines or other similar expenses associated with the transfer of funds described in this Agreement, including, foreign transaction fees and any overdraft fees.
4.12 Interest on Late Payments.
If any fee or other payment due to us or our affiliates under this Agreement is not paid on or before its due date, you agree to pay us, in addition to the overdue amount, interest on any overdue payment of one and one-half percent (1.5%) per month (or the highest rate allowed by law, whichever is lower). Interest on any overdue amount shall begin to accrue thirty (30) days after the original due date until payment in full is received.
Source: Item 23 — RECEIPTS (FDD pages 74–246)
What This Means (2025 FDD)
According to Eos Worldwide's 2025 Franchise Disclosure Document, if a franchisee fails to make payments on time, they will incur interest on the overdue amount. The interest rate is 1.5% per month, or the highest rate allowed by law, whichever is lower. This interest begins accruing 30 days after the original due date and continues until the full payment is received.
This late payment interest also applies to any understated amounts discovered during an audit of the franchisee's financial records. Eos Worldwide clarifies that this interest charge does not obligate them to accept late payments or extend credit to finance the franchisee's operations.
It is important to note that failure to pay amounts owed when due constitutes grounds for termination of the Franchise Agreement. This underscores the importance of timely payments to maintain good standing with Eos Worldwide and avoid potential penalties or termination.