What is the interest rate charged on overdue payments to Hyper Kidz?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
hen Billed |
| Fees (1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Initial Training (For New or Replacement Employees) | $1,500 | 15 days after billing | Training for up to three people is included in the training fee. If you request that we provide our initial training program to any additional employees, or to new or replacement employees during the term of your Franchise Agreement, you must pay our training fee as well as the trainees' expenses, including travel, lodging, meals and wages. |
| Additional On-Site Training | $250 | When billed | If you request that we provide additional training at your Hyper Kidz Business or if we determine you need additional training, you must pay our daily fee for each trainer we send to your Hyper Kidz Business, and you must reimburse each trainer's expenses, including travel, lodging and meals. |
| Designated Accounting Fee | $250 per month | As incurred | Payable to designated supplier. Our designated accountant is the sole approved accounting services provider for the first two years of operation of your Franchised Business. |
| Interest | 1.5% per month or the highest rate allowed by applicable law, whichever is less | On demand | Interest may be charged on all overdue amounts. Interest accrues from the original due date until the amount is paid in full. |
| Late Fee | $125 per occurrence | On demand, if incurred | For any payment owed to us that is not paid on time, you must pay us, in addition to int |
Source: Item 6 — OTHER FEES (FDD pages 10–15)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, if a franchisee has any overdue amounts, Hyper Kidz may charge interest. This interest accrues from the original due date until the amount is paid in full. The interest rate is 1.5% per month, or the highest rate allowed by applicable law, whichever is less.
In practical terms, this means that if a Hyper Kidz franchisee fails to make a payment on time, they will be charged interest on the outstanding balance. The specific rate will depend on both the stated percentage and any legal restrictions on interest rates in the relevant jurisdiction. Franchisees should be aware of this policy and ensure timely payments to avoid incurring these charges.
In addition to interest, Hyper Kidz also charges a late fee of $125 per occurrence for any payment not made on time. This is separate from the interest charged on the overdue amount. Franchisees need to factor in both the interest and the late fee when assessing the financial consequences of late payments.