How much interest will Management Recruiters charge on overdue amounts, and when does it begin to accrue?
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. |
|---|---|---|---|
| Additional Optional Training Fees | Varies. See Note 9. | Prior to provision of services. See Note 9. | Payable upon registration. See Note 9. |
Source: Item 6 — OTHER FEES (FDD pages 16–23)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, if a franchisee fails to pay amounts due under the Franchise Agreement, Management Recruiters will charge interest on the overdue amount. This interest will be the lesser of 1.5% per month or the maximum amount allowed by law.
Interest begins accruing on overdue amounts starting from the first day of the month following the date the payment was due. This means that if a payment is late, interest charges will start accumulating at the specified rate from the beginning of the next month until the payment is made.
In addition to the standard interest charge, Management Recruiters also specifies a late fee of 5% per month of the late payment. This late fee is applied upon non-payment of amounts due under the Franchise Agreement. Franchisees should be aware of these charges and ensure timely payments to avoid incurring these additional costs.