When is interest charged on overdue payments to Gokhale Method?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
All payments due Franchisor for activities within a calendar month will be made to us within 10 days of the close of such month.
If any payment to us is overdue by thirty (30) days or more, you shall pay us immediately upon demand, in addition to the overdue amount, Interest on such amount from the date it was due until received by us.
For purposes of this Agreement, Interest shall be at 18 percent per annum or the highest rate permitted by law, whichever is less.
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to Gokhale Method's 2024 Franchise Disclosure Document, interest is charged on overdue payments if any payment is overdue by thirty (30) days or more. In such cases, the franchisee must immediately pay Gokhale Method upon demand, including the overdue amount and interest from the original due date until the payment is received.
The interest rate applied to overdue amounts is 18 percent per annum, or the highest rate permitted by law, whichever is less. This means that if the legal maximum interest rate in the franchisee's jurisdiction is lower than 18 percent, that lower rate will be used.
This policy ensures that Gokhale Method is compensated for the time value of money and the inconvenience caused by late payments. It also incentivizes franchisees to make timely payments to avoid incurring additional charges. Prospective franchisees should be aware of this policy and ensure they have sufficient financial resources to meet their payment obligations to Gokhale Method on time.