What fees are subject to interest charges for late payment to Floors To Go?

Based on the 2025 Floors To Go Franchise Disclosure Document, the document does not explicitly state which specific fees are subject to interest charges for late payments, but it does state that any interest rate charged to a California franchisee must comply with the California Constitution and cannot exceed the higher of 10% annually or 5% annually plus the prevailing interest rate charged to banks by the Federal Reserve Bank of San Francisco.

For prospective Floors To Go franchisees, this means that while the FDD acknowledges the potential for interest charges on fees, it lacks specifics. This ambiguity makes it crucial for potential franchisees to seek clarification from the franchisor regarding which fees are subject to interest, the conditions under which interest is applied, and the exact interest rate charged. Understanding these details is essential for managing finances and avoiding unexpected costs.

To gain a comprehensive understanding, prospective franchisees should ask Floors To Go for a detailed list of all fees that may incur interest charges if not paid on time. They should also inquire about the specific interest rates applicable to each type of fee and the grace period, if any, before late payment interest charges are applied. Furthermore, it would be prudent to understand if these terms are consistent across all franchisees or if they vary based on location or other factors.