What is the insufficient funds fee charged to Fly To Fit franchisees?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Insufficient funds fee | $30 (or, if such amount exceeds the maximum allowed by law, then the maximum allowed by law) | On demand | We may charge an insufficient funds fee if a payment made by you is returned because of insufficient funds in your account. |
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, an insufficient funds fee may be charged to franchisees. If a payment made by a franchisee is returned due to insufficient funds in their account, Fly To Fit may charge a fee of $30. However, the FDD specifies that if this amount exceeds the maximum allowed by law, then the maximum allowed by law will be charged instead. This fee is due on demand.
This means that if a franchisee's payment to Fly To Fit is rejected by the bank due to insufficient funds, the franchisee will be responsible for paying this fee. The fee covers the administrative costs Fly To Fit incurs as a result of the rejected payment.
It is important for prospective franchisees to understand all the fees associated with operating a Fly To Fit franchise, including the insufficient funds fee. Franchisees should ensure they have sufficient funds available when making payments to avoid incurring this charge. This fee is in addition to any late fees or interest that may be charged on overdue amounts.