What is the fiscal period used to calculate interest on overdue payments to Hardee's?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee (1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Interest | Interest on the amount owed from the date due until paid | When any payment is overdue | The interest rate is the maximum rate permitted for indebtedness of this nature in the state in which the Franchised Restaurant is located not to exceed 1.5% per fiscal period (or a portion of a fiscal period). |
Source: Item 6 — OTHER FEES (FDD pages 29–36)
What This Means (2025 FDD)
According to Hardee's 2025 Franchise Disclosure Document, interest on overdue payments is calculated based on a fiscal period. Specifically, Hardee's charges interest on any amount owed from the date it is due until it is paid. The interest rate is the maximum rate permitted for indebtedness in the state where the franchised restaurant is located, but it will not exceed 1.5% per fiscal period, or a portion thereof.
For a prospective Hardee's franchisee, this means that if you fail to make payments on time, you will incur interest charges. The exact interest rate will depend on state law, but Hardee's caps it at 1.5% per fiscal period. It is important to note that interest can be charged for any portion of a fiscal period that a payment is overdue, so even a short delay can result in additional costs.
In the franchise industry, charging interest on overdue payments is a common practice. The specific interest rate and compounding period can vary, so it's important for franchisees to understand the terms outlined in the Franchise Agreement. Franchisees should prioritize timely payments to avoid these additional charges and maintain a good financial standing with Hardee's.