What interest rate does Healthsource Chiropractic charge on late payments, and how is it determined?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee (1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Interest | Lesser of 15% per annum, and the highest commercial contract interest rate permitted by law | From the date payments are due, and continues until outstanding balance and accrued interest are paid in full | Charged on any late payments of Continuing Franchise Fees, Advertising Fees, amounts due for product purchases, or any other amounts due us or our affiliates. |
Source: Item 6 — Other Fees (FDD pages 17–23)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, if a franchisee makes a late payment, Healthsource Chiropractic charges interest. The interest rate is the lesser of 15% per annum or the highest commercial contract interest rate permitted by law. This interest applies to any late payments of Continuing Franchise Fees, Advertising Fees, amounts due for product purchases, or any other amounts owed to Healthsource Chiropractic or its affiliates. The interest is calculated from the date the payment was originally due and continues to accrue until the outstanding balance, including the accrued interest, is paid in full.
For a prospective Healthsource Chiropractic franchisee, this means that failing to make timely payments can result in significant additional costs. It is crucial to ensure that all payments, including franchise fees, advertising fees, and product purchases, are made on time to avoid incurring these interest charges. The specific interest rate applied will depend on the prevailing legal limits, but franchisees should be prepared to pay up to 15% per year on any overdue amounts.
This policy is fairly standard in franchising, as franchisors need to ensure timely payments to maintain their own financial stability and provide consistent support to all franchisees. Franchisees should factor in these potential late payment fees when managing their finances and setting up payment schedules. Setting up systems to ensure timely payments can help avoid these charges and maintain a good financial standing with Healthsource Chiropractic.