What is the late fee charged by Hyper Kidz if a payment is not made when due?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
ty vendor(s), and expenses for technology required by this Agreement for operation of the Franchised Business, including but not limited to, the costs of computer hardware and software and applications, installation costs and regularly recurring fees for software and digital menu displays, Internet access, license fees, help desk fees, and licensing or user-based fees.
10.5 Late Fee; Interest on Late Payments
10.5.2 If any payment owed to us hereunder is not paid when due, you shall also pay to us, in addition to interest on any overdue amount as described below, a late fee in the amount of One Hundred Twenty-Five Dollars ($125).
10.5.1 All Royalty Fees, Brand Development Fees (as described in Section 12.1), amounts due for purchases by you from us or our Affiliates, and other amounts which you owe to us or our Affiliates, if such payments are not paid when due, shall bear interest after the due date at a rate equal to one and one-half percent (1.5%) per month or the maximum interest rate permitted by law, whichever is less. Interest shall accrue from the original due date until payment in full is rece
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to the 2024 Hyper Kidz Franchise Disclosure Document, if a franchisee fails to make a payment when it is due, Hyper Kidz charges a late fee of $125. This is in addition to any interest that accrues on the overdue amount.
Interest on late payments is calculated at a rate of 1.5% per month, or the maximum interest rate permitted by law, whichever is less. The interest accrues from the original due date until the full payment is received by Hyper Kidz.
It is important to note that Hyper Kidz's acceptance of late payments does not constitute an agreement to accept such payments after they are due, nor does it represent a commitment to extend credit or finance the franchisee's operations. Failure to pay amounts when due can be grounds for termination of the franchise agreement.