What is the interest rate charged by Kidokinetics on unpaid amounts?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
- 5.6.2. Interest. Any and all amounts that are unpaid at the time they are due and owing from Franchisee to Franchisor under the terms of this Agreement will bear interest from the date due until paid at the rate of 1.5% per month or at the highest rate permitted by law, whichever is lower.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, any amounts that are unpaid when due from the franchisee to Kidokinetics will incur interest. This interest is calculated from the date the payment was originally due until it is fully paid. The interest rate applied will be 1.5% per month, or the highest rate permitted by law, whichever is lower.
This means that if a Kidokinetics franchisee fails to make timely payments for royalties, brand development funds, technology fees, or any other amounts owed to Kidokinetics, they will be charged interest on the outstanding balance. The 1.5% monthly interest rate can quickly add up, making it crucial for franchisees to manage their finances responsibly and ensure timely payments.
It is important to note that the interest rate may be adjusted to comply with applicable laws, ensuring that Kidokinetics does not charge an interest rate higher than what is legally allowed. Franchisees should be aware of this provision and factor it into their financial planning to avoid incurring unnecessary interest charges.