What is the late fee charged by Management Recruiters for overdue payments?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
as a penalty) in an amount equal to the lesser of five percent (5%) per month of the late payment from the date due until paid or the maximum rate allowable under
- applicable Law. This provision is neither an agreement by Franchisor to accept any late payment nor a commitment by Franchisor to extend credit or otherwise finance any aspect of the Franchise Business and shall not be construed as such.
- 5.6.4.Overdue Report Fee. If any report due from Franchisee, whether described in Section 6, Section 19.6, or otherwise, is not received by Franchisor as required by this Agreement, Franchisee shall pay to Franchisor a late fee of fifty dollars ($50.00) per week for each week that the report is not received. This late fee is reasonably related to the costs resul
Source: Item 23 — RECEIPTS (FDD pages 67–327)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, there are two types of late fees. If a franchisee fails to submit a required report, Management Recruiters charges a late fee of $50 per week for each week the report is overdue. This fee is considered reasonably related to the costs incurred due to the delay and is not considered a penalty.
In addition to the overdue report fee, Management Recruiters also charges interest on any amounts that are not paid when due. This interest accrues from the date the payment was originally due until it is paid. The interest rate is 1.5% per month, or the highest rate permitted by law, whichever is lower.
Prospective franchisees should be aware of these late fee and interest charges, as they can add to the overall cost of operating a Management Recruiters franchise if payments or reports are not submitted on time. Franchisees should ensure they understand all reporting requirements and payment schedules to avoid incurring these additional costs.