What rate of interest applies to overdue amounts owed by the Debtor to Epcon Communities?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
Until paid, all amounts due and payable by the Debtor hereunder shall be a debt secured by the Collateral and shall bear, whether before or after judgment, interest at the rate of interest for overdue payments set forth in the Franchise Documents.
Source: Item 23 — RECEIPTS (FDD pages 86–280)
What This Means (2025 FDD)
According to the 2025 Epcon Communities Franchise Disclosure Document, all overdue amounts owed by the Debtor will bear interest at the rate of interest for overdue payments as specified in the Franchise Documents. This means that if a franchisee fails to make timely payments to Epcon Communities, the overdue amount will accrue interest.
The specific interest rate is not provided in this excerpt, but it is determined by the terms outlined within the broader set of 'Franchise Documents'. Prospective franchisees should carefully review the Franchise Agreement and any related documents to understand the exact interest rate applicable to overdue amounts.
Understanding the interest rate on overdue amounts is crucial for franchisees to manage their finances effectively and avoid incurring additional costs. Franchisees should clarify this rate with Epcon Communities during their due diligence process to fully understand their financial obligations.