When is the Late Payment Fee due for an Epcon Communities franchise?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Late Payment Fee | Lesser of interest at 18% annual rate or maximum rate permissible under state law, for the period beginning on the day payment is due through the date payment in full is made to us, as well as our costs of collection, including reasonable attorney’s fees. | When payment is overdue. |
Source: Item 6 — OTHER FEES (FDD pages 16–22)
What This Means (2025 FDD)
According to Epcon Communities' 2025 Franchise Disclosure Document, the Late Payment Fee is due when a payment is overdue. The fee is the lesser of interest at an 18% annual rate or the maximum rate permissible under state law. This interest is calculated from the day the payment was originally due until the date full payment is made.
In addition to interest, Epcon Communities also charges franchisees for costs of collection, including reasonable attorney's fees, if a payment is overdue. This means that if an Epcon Communities franchisee fails to make a payment on time, they will incur not only interest charges on the outstanding balance but also any expenses Epcon Communities incurs while trying to recover the payment.
Late fees and interest charges are standard practice in franchising and other business relationships to encourage timely payments. Franchisees should ensure they understand the payment terms for all fees and royalties to avoid incurring these additional costs. It is also important to note that the interest rate may vary depending on state law, so franchisees should be aware of the regulations in their specific location.