What are the 'costs of collection' that a Fly To Fit franchisee might be responsible for?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Costs of collection | Our actual costs | As incurred | Payable if we incur costs (including reasonable attorney fees) in attempting to collect amounts you owe to us. |
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, a franchisee may incur 'costs of collection' if Fly To Fit has to take action to collect overdue amounts. These costs are defined as Fly To Fit's actual costs, including reasonable attorney fees, that they incur while trying to collect what the franchisee owes them. These costs are payable as they are incurred.
This means that if a Fly To Fit franchisee fails to pay fees or other amounts owed to Fly To Fit on time, the franchisee could be responsible not only for the original unpaid amount, but also for any legal fees or other expenses Fly To Fit incurs in the process of trying to recover the debt. This is in addition to any late fees or interest that may be charged on the unpaid amount.
It is important for a prospective Fly To Fit franchisee to understand that these collection costs can potentially add a significant financial burden on top of the original debt. Franchisees should ensure they have a clear understanding of all payment obligations and due dates to avoid triggering these costs. Maintaining open communication with Fly To Fit regarding any potential payment issues can also help mitigate the risk of incurring collection costs.