What is the late fee for overdue payments to Itan?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
in this Agreement in a timely manner as if fully set forth in §13. You also agree to promptly pay us an amount equal to all taxes levied or assessed against us based on goods or services you sell or goods or services we furnish to you, excluding income taxes imposed on us based on fees you pay us under this Agreement.
- 13.4. Due Date & Late Fee. Payments are due 10 days after invoicing unless otherwise specified. If any sum due under this Agreement is not received by us when due or there are insufficient funds in your Account to cover the sum when due, then in addition to this sum you must pay us $100 plus default interest on the amount past due at a rate equal to the lesser of 18% per annum (pro-rated on a daily basis) or the highest rate permitted by applicable Law. We will not impose a late fee for any amount paid pursuant to §13.5 if, but only to the extent that, sufficient funds were available in your Account to be applied towards the p
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, payments are due 10 days after invoicing unless otherwise specified in the agreement. If Itan does not receive a payment when due, or if there are insufficient funds to cover the payment, Itan will charge a late fee. This late fee consists of $100, plus default interest on the past due amount. The default interest rate is the lesser of 18% per annum (prorated daily) or the highest rate permitted by applicable law.
However, Itan will not impose a late fee for amounts paid pursuant to section 13.5 if sufficient funds were available in the franchisee's account to cover the payment when due. Section 13.5 likely refers to payments made via ACH agreement, where Itan is authorized to electronically debit the franchisee's account.
Itan may assess a late fee on the entire amount due if the franchisee fails to record sales or submit gross sales reports in a timely manner, preventing Itan from determining the amount due. This policy does not obligate Itan to accept late payments or extend credit to the franchisee.