What is the maximum interest rate Epcon Communities can charge on late payments from a franchisee?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
relief.
Minnesota Rules 2860.4400(D) prohibit a franchisor from requiring a franchisee to assent to a release, general release, assignment, novation, or waiver that would relieve
What This Means (2025 FDD)
According to the 2025 Epcon Communities Franchise Disclosure Document, Minnesota Statute 604.113 limits the amount Epcon Communities can charge franchisees who do not have sufficient funds for payment that is due. The statute stipulates that Epcon Communities can charge a maximum of $30 per occurrence for insufficient funds.
This means that for franchisees operating in Minnesota, Epcon Communities is restricted to charging no more than $30 each time a payment is not honored due to insufficient funds. This protection is provided by Minnesota state law, which takes precedence over any conflicting terms in the franchise agreement.
It is important to note that this limitation applies specifically to insufficient funds fees and may not cover other types of late payment penalties or interest charges that Epcon Communities might impose. Franchisees should carefully review their franchise agreement and any applicable state laws to fully understand all potential fees and penalties associated with late payments.