What is the interest rate charged on overdue payments to Golden Corral?
Golden_Corral Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Late Fee for Overdue | $75.00 | As incurred | |
| Payments | |||
| Interest on Overdue Payments | Lesser of 1.5% per month (calculated daily) or maximum legal rate | As incurred | Interest payments on overdue amounts are in addition to other remedies available to Golden Corral |
Source: Item 6 — OTHER FEES (FDD pages 12–19)
What This Means (2025 FDD)
According to Golden Corral's 2025 Franchise Disclosure Document, if a franchisee makes a late payment, Golden Corral charges interest on the overdue amount. This interest is calculated daily and is the lesser of 1.5% per month or the maximum legal rate. This interest charge is in addition to any other remedies Golden Corral might pursue for the overdue payment.
In practical terms, this means a franchisee could face a significant penalty for late payments. For example, if the maximum legal rate is higher than 1.5% per month, the franchisee will be charged 1.5% per month, which annualizes to 18%. The FDD specifies that the interest is calculated daily, meaning the interest accrues each day the payment is late, compounding the amount owed.
Franchisees should be aware of this policy and ensure timely payments to avoid incurring these interest charges. It's also important to note that this interest charge is in addition to a $75 late fee for overdue payments, further increasing the cost of late payments. Franchisees should factor these potential costs into their financial planning and budgeting.