What is the interest rate charged on overdue payments to Extreme Art Studio?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
actually owe us, we will credit the excess against the amounts we otherwise would debit from your designated account on the next payment due date.
3.10 LATE PAYMENTS/INSUFFICIENT FUNDS.
- 3.10.1 Any payment not made by the due date will be deemed overdue. In the event of any overdue amounts, you will pay us, in addition to the overdue amounts, interest on such amounts from the date such amounts were due until paid at the lesser of the daily equivalent of eighteen percent (18%) per year simple interest or the highest amount allowed under law. Such interest will be in addition to any other remedies we may have under law or equity. We may debit your bank account automatically, or deduct from amounts we owe you, for service charges and interest. You acknowledge this Section is not our agreement to accept any payments after they are due or our commitment to extend credit to, or otherwise finance your operation of, the Extreme Art Studio Franchise.
- 3.10.2 If any check or EFT payment from you to u
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, any payment not made by the due date is considered overdue. In the event of overdue amounts, Extreme Art Studio will charge interest on those amounts from the date they were due until paid. The interest rate will be the lesser of 18% per year simple interest or the highest amount allowed by law. This interest is in addition to any other remedies Extreme Art Studio may have under law or equity.
Extreme Art Studio has the right to debit the franchisee's bank account automatically or deduct from amounts owed to the franchisee for service charges and interest. The agreement specifies that this section does not obligate Extreme Art Studio to accept late payments or extend credit to the franchisee.
Additionally, if any check or EFT payment from the franchisee to Extreme Art Studio does not successfully convey funds due to insufficient funds, stop payment instructions, or any similar event, the franchisee will also pay a non-sufficient funds fee of $100 per incident upon demand.