What is the Late Fee charged by Hyper Kidz for payments not made on time?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
| Fees (1) | Amount | Due Date | Remarks |
|---|---|---|---|
| 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 interest on the overdue amount, a late fee. |
Source: Item 6 — OTHER FEES (FDD pages 10–15)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, a franchisee will be charged a $125 late fee for each occurrence of a payment not being made on time. This fee is in addition to any interest charged on the overdue amount. The interest rate is 1.5% per month or the highest rate allowed by applicable law, whichever is less, and accrues from the original due date until the amount is paid in full. Both the late fee and interest are due on demand if incurred.
This means that if a Hyper Kidz franchisee misses a payment deadline, they will incur an immediate $125 fee, plus an ongoing interest charge on the outstanding balance. It is important for franchisees to manage their finances carefully and ensure timely payments to avoid these additional costs. The FDD specifies that all fees are non-refundable, so late fees cannot be recovered.
Late fees and interest charges are standard practice in franchising to encourage timely payments and compensate the franchisor for the administrative burden and potential financial losses caused by late payments. Franchisees should be aware of all payment deadlines and ensure they have sufficient funds available to meet their obligations to Hyper Kidz. Setting up automatic payments may be a useful strategy to avoid incurring late fees and interest charges.