What is the interest rate charged by Management Recruiters on overdue amounts?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
| Interest | Lesser of 1.5% per month or maximum amount allowed by law. | Upon Demand | Payable on overdue amounts, beginning with first day of following month. |
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If you do not pay any amount due under the Franchise Agreement when it is due, in addition to the amount due, you will also owe an amount equal to the lesser of fiver percent (5%) per month of the late payment from the due date until paid or the maximum rate allowable under applicable law.
Source: Item 6 — OTHER FEES (FDD pages 16–23)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, there are two distinct interest charges that may be applied to overdue amounts.
First, Management Recruiters charges interest on overdue amounts at a rate of the lesser of 1.5% per month or the maximum amount allowed by law. This interest begins accruing from the first day of the month following the date the payment was due.
Second, if a franchisee fails to pay any amount due under the Franchise Agreement, Management Recruiters may charge a late fee equal to the lesser of 5% per month of the late payment or the maximum rate allowable under applicable law. Therefore, a prospective franchisee should be aware of these potential charges for overdue payments.