Is the insufficient funds fee charged by Fly To Fit capped by law?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
on the unpaid amount at a rate equal to 18% per year (or, if such payment exceeds the maximum allowed by law, then interest at the highest rate allowed by law).
- (d) Insufficient Funds. Fly To
Source: Item 22 — CONTRACTS (FDD page 44)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, Fly To Fit may charge franchisees $30 for any payment returned due to insufficient funds. However, this fee is subject to legal limitations.
Specifically, the FDD states that if the $30 amount exceeds the maximum allowed by law, Fly To Fit will only charge the fee allowed by law. This means that the insufficient funds fee will not exceed any legal maximums set by applicable laws or regulations.
This provision protects franchisees from potentially excessive fees if state or local laws impose lower limits on insufficient funds charges. Prospective franchisees should be aware of the relevant laws in their area to understand the maximum fee that Fly To Fit could legally charge.