When is the late fee due from a Fly To Fit franchisee?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Late fee | $100 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) | On demand | We may charge a late fee if you fail to make a required payment when due. |
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 late fee is due 'on demand.' If a Fly To Fit franchisee fails to make a required payment when it is due, Fly To Fit may charge a late fee. The late fee is $100, plus interest on the unpaid amount. The interest rate is 18% per year, but if that rate exceeds the maximum allowed by law, the interest rate will be the highest rate allowed by law.
This means that Fly To Fit franchisees must ensure all payments are made on time to avoid incurring this fee. The 'on demand' due date provides Fly To Fit with the flexibility to demand immediate payment of the late fee as soon as a payment is missed. Franchisees should be aware of all payment deadlines and maintain sufficient funds to cover all obligations to avoid this additional expense.
Late fees and interest charges are standard in franchising and other business relationships. Franchisees should carefully review the payment terms outlined in the franchise agreement and budget accordingly to minimize the risk of late payments. Maintaining open communication with Fly To Fit regarding any potential payment issues can also help mitigate the risk of incurring late fees and interest charges.