What is the formula for calculating the interest on overdue amounts owed to Expense Reduction Analysts?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
| NAME OF FEE1 | AMOUNT OR FORMULA | DUE DATE | REMARKS |
|---|---|---|---|
| to us, including interest at 1.5% | |||
| per annum or the highest rate | |||
| allowed by law. The 5% cost of | |||
| collection does not include fees | |||
| charged by the collection agency. |
Source: Item 6 — OTHER FEES (FDD pages 13–19)
What This Means (2025 FDD)
According to Expense Reduction Analysts' 2025 Franchise Disclosure Document, any overdue amounts owed to Expense Reduction Analysts will accrue interest. The interest is calculated at a rate of 1.5% per annum, or the highest rate allowed by law, whichever is greater.
This means that if a franchisee fails to pay fees or other amounts owed to Expense Reduction Analysts on time, they will be charged interest on the outstanding balance. The specific interest rate applied will depend on whether 1.5% per year is legally permissible in the franchisee's jurisdiction, or whether a different maximum rate is mandated by law. Franchisees should be aware of this potential additional cost and ensure timely payments to avoid incurring interest charges.
In addition to interest, Expense Reduction Analysts may also charge a franchisee for costs of collection if a collection agency is used to recover overdue amounts. These costs of collection are 5% of all costs of collection, including reasonable attorney's fees, but do not include fees charged by the collection agency.