What interest rate will Exit Franchisees pay on overdue amounts?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
eement between them. Continuing Fees shall be paid by electronic bank transfer or by such means as Subfranchisor and EXIT may direct.
7.2. Interest, Late Charges and Overdue Amounts
Franchisee shall pay Subfranchisor and EXIT, as applicable, interest at the annual rate equal to the Prime Rate published from time to time in the Money Rates section of the Wall Street Journal plus five percent (5%), on all amounts due under this Agreement that are more than thirty (30) days late. Franchisee shall also pay Subfranchisor and EXIT, as applicable, a late fee of five percent (5%) of the amount of the late payment, if a payment is late. In addition to the foregoing, Franchisee shall pay to EXIT Twenty-Five Dollars ($25.00) for each of Franchisee's chec
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, franchisees will incur interest on overdue amounts. Specifically, if any amount due under the Franchise Agreement remains unpaid for more than thirty days, Exit will charge interest.
The interest rate is calculated as the Prime Rate published in the Money Rates section of the Wall Street Journal, plus an additional five percent (5%) annually. This means the actual interest rate can fluctuate over time, depending on changes to the Prime Rate.
In addition to interest, Exit franchisees will also be charged a late fee. This fee is equal to five percent (5%) of the overdue payment amount. Franchisees are also responsible for a $25 fee for any checks returned by the bank due to any reason, as well as a $25 fee for any electronic ACH failures.