Can Learningrx impose interest on late payments from a Learningrx franchisee?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
Unless otherwise stated, Franchisee must pay interest at the rate of one percent (1%) per month or the maximum interest rate allowed by applicable law, whichever is less, for any late payments due under this Agreement or for any payments returned to Franchisee due to insufficient funds.
Franchisee must pay any damages, expenses through appeal, collection costs, and reasonable attorneys' fees Franchisor incurs in connection with Franchisee's failure to make any required payments or in connection with any payments returned to Franchisee due to insufficient funds, plus a fine in accordance with the relevant provisions of the Operations Manual.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to the 2025 Learningrx Franchise Disclosure Document, Learningrx can charge interest on late payments. Specifically, Learningrx franchisees must pay interest on any late payments or payments returned due to insufficient funds.
The interest rate will be one percent (1%) per month or the maximum interest rate allowed by applicable law, whichever is less. This means that if state or local laws have a lower maximum interest rate, that lower rate will apply instead of the 1% stated in the franchise agreement.
In addition to interest on late payments, Learningrx franchisees are also responsible for covering any damages, expenses through appeal, collection costs, and reasonable attorneys' fees that Learningrx incurs due to the franchisee's failure to make required payments or due to payments returned for insufficient funds. Franchisees may also be subject to a fine as outlined in the Operations Manual.