What is the standard late fee charged to a Fly To Fit franchisee?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
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| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Reimbursement | Amount that we spend on your behalf, plus 10% | Within 15 days of invoice | If we pay any amount that you owe or are required to pay to a third party, you must reimburse us. |
| 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. |
| 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. |
| 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. |
| Special support fee | Our then-current fee, plus our expenses. Currently, $600 per day. | On demand | If we provide in-person support to you in response to your request, we may charge this fee plus any out-of-pocket expenses (such as travel, lodging, and meals for employees providing onsite support). |
| Customer complaint resolution | Our expenses | On demand | We may take any action we deem appropriate to resolve a customer complaint about your business. If we respond to a customer complaint, we may require you to reimburse us for our expenses. |
| Records audit | Our actual cost | On demand | Payable only if (1) we audit you because you have failed to submit required reports or other non-compliance, or (2) the audit concludes that you under-reported gross sales by more than 3% for any |
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 be charged a late fee of $100, in addition to interest on the unpaid amount. The interest rate is set at 18% per year, unless this exceeds the maximum rate allowed by law, in which case the highest legally permissible rate will be applied. This fee is charged if a franchisee fails to make a required payment by its due date.
This means that if a Fly To Fit franchisee is late on a payment, they will incur an immediate $100 fee. Furthermore, they will accrue interest on the outstanding balance at a rate of 18% annually, or the maximum legal rate, until the payment is made. This could significantly increase the amount owed, especially if the payment is delayed for an extended period.
Franchisees should ensure that all payments are made on time to avoid these charges. It is also important to understand the specific due dates for all fees and to have a system in place to track and manage these payments. Prospective franchisees should factor in the potential for late fees and interest when assessing the overall cost of investing in a Fly To Fit franchise.