What is the maximum interest rate Expense Reduction Analysts can charge 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 Expense Reduction Analysts' 2025 Franchise Disclosure Document, if a franchisee has overdue amounts, Expense Reduction Analysts can charge interest at a rate of 1.5% per annum. However, the document specifies that Expense Reduction Analysts can charge the higher rate if the highest rate allowed by law is greater than 1.5% per annum.
This means that the interest rate Expense Reduction Analysts charges on overdue amounts could fluctuate based on applicable laws. It is important to note that the 5% cost of collection does not include fees charged by the collection agency.
For a prospective franchisee, this indicates that late payments to Expense Reduction Analysts will incur interest charges. The exact amount will depend on the prevailing legal limits, which could be higher than the stated 1.5% per annum. Franchisees should be aware of this potential cost and ensure timely payments to avoid these charges.