What is the interest rate charged by Expense Reduction Analysts on overdue amounts?
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 the 2025 Expense Reduction Analysts FDD, overdue amounts are subject to interest. Expense Reduction Analysts may charge interest on overdue amounts at a rate of 1.5% per annum. However, the FDD specifies that the interest rate could be the highest rate allowed by law if that is different.
This means that if a franchisee fails to make timely payments to Expense Reduction Analysts, they will incur interest charges on the outstanding balance. The specific rate will be the higher of 1.5% per year or the maximum legally permissible rate, which may vary depending on the franchisee's location and applicable laws.
It is important for prospective Expense Reduction Analysts franchisees to be aware of this policy and ensure they manage their finances responsibly to avoid incurring interest charges on overdue amounts. Franchisees should consult with legal and financial advisors to understand the implications of these terms and the relevant laws in their jurisdiction.