What is the late fee charged by Fly To Fit for late payments?
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 interest 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, if a franchisee fails to make payments on time, Fly To Fit will charge a $100 late fee. In addition to the late fee, Fly To Fit will also charge interest on the unpaid amount. The interest rate is 18% per year, but if this rate exceeds the maximum allowed by law, the interest rate will be the highest rate allowed by law.
This policy ensures that Fly To Fit franchisees are incentivized to make timely payments. The late fee and interest charges are intended to compensate Fly To Fit for the administrative costs and potential financial losses associated with late payments.
As a prospective franchisee, it's important to understand these payment terms and ensure that you have a system in place to manage your finances effectively. Failure to make timely payments can result in these additional charges, which can impact your profitability. It is also important to note that Fly To Fit may charge $30 for any payment returned due to insufficient funds.