What is the annual interest rate charged by Fly To Fit on unpaid amounts?
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 a rate of 18% per year. However, if this rate exceeds the maximum allowed by law, the interest will be charged at the highest rate legally permissible.
This means that prospective Fly To Fit franchisees need to be aware of the importance of timely payments to avoid these additional costs. The late fee is a fixed amount, while the interest is a percentage of the outstanding balance, which could accumulate quickly depending on the amount owed.
Franchisees should also be aware of the potential for the interest rate to be adjusted to comply with local laws, which could result in a lower interest rate in some jurisdictions. It is important to understand the specific regulations in their area to anticipate potential late payment charges accurately. Fly To Fit also has the right to recover any costs associated with collecting overdue payments, including attorney fees, which could significantly increase the financial burden of late payments.