What is the non-sufficient funds fee charged by Extreme Art Studio for a failed payment?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
dge 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, if a franchisee's check or EFT payment does not successfully clear due to insufficient funds, a stop payment, or a similar event, Extreme Art Studio will charge a non-sufficient funds fee. This fee is $100 per incident and is payable upon demand.
This means that if a franchisee attempts to make a payment to Extreme Art Studio and the payment is rejected by the bank for any reason such as insufficient funds, the franchisee will incur an additional $100 fee on top of the original amount owed. This fee is intended to cover the administrative costs and inconvenience caused by the failed payment.
It is important for prospective Extreme Art Studio franchisees to maintain sufficient funds in their accounts to avoid these fees. Franchisees should also be aware of the potential for late payment interest charges, which can accrue at a rate of 18% per year or the highest amount allowed under law, in addition to any non-sufficient funds fees.