What is the annual interest rate charged on late payments to Fly To Fit?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
acknowledges
that Fly To Fit Franchise has the right to remotely access Franchisee's point-of-sale system to calculate Gross Sales.
- (c) Late Fees and Interest. If Franchisee does not make a payment on time, Franchisee shall pay a $100 "late fee" plus interes
Source: Item 22 — CONTRACTS (FDD page 44)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, if a franchisee fails to make payments on time, they will incur a $100 late fee. Additionally, Fly To Fit will charge interest on the unpaid amount at an annual rate of 18%.
However, the FDD specifies a condition: if this interest rate exceeds the maximum allowed by law, the interest rate will be adjusted to the highest rate legally permissible. This ensures that Fly To Fit remains compliant with applicable regulations regarding interest charges.
This policy means that franchisees must prioritize timely payments to avoid these additional costs. The late fee and interest charges can add up quickly, impacting the profitability of the Fly To Fit franchise. Franchisees should be aware of these terms and factor them into their financial planning to maintain a healthy business operation.