What is the maximum interest rate Face Foundrie charges on overdue payments?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
actually owes Franchisor, Franchisor will debit Franchisee's account for the balance on a day Franchisor specifies. If the Royalty Fee, Marketing Contribution, and other amounts Franchisor debits are greater than the fees Franchisee actually owes Franchisor, Franchisor will credit the excess against the amount Franchisor otherwise would debit from Franchisee's account during the following month.
- 6.05 Late Payments and Insufficient Funds. All overdue payments for fees required to be paid hereunder shall bear interest from the date due at the rate specified by Franchisor from time to time, up to the highest rate permitted by law, but in no event shall such rate exceed one and one-half percent (1½%) per month. Interest shall accrue on all late payments regardless of
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, franchisees may incur interest charges on overdue payments. Face Foundrie has the right to specify the interest rate, but it will not exceed the maximum rate permitted by law. However, the interest rate will not exceed one and one-half percent (1½%) per month.
In addition to interest on overdue amounts, Face Foundrie may also charge a $50 late payment fee for each overdue payment. Furthermore, if a franchisee's payment method is not honored by their financial institution, Face Foundrie can charge a $30 insufficient funds fee for each occurrence.
These late payment and insufficient fund fees are standard practice in franchising. Prospective Face Foundrie franchisees should be aware of these potential charges and ensure timely payments to avoid incurring these additional costs. It is important to maintain sufficient funds in the designated bank account to prevent any payment issues.