Under what condition does the Late Fee apply to Management Recruiters franchisees, and how is it calculated?

According to Management Recruiters' 2024 Franchise Disclosure Document, a late fee is applied if a franchisee fails to pay any amount due under the Franchise Agreement when it is due. In addition to the amount that was originally due, the franchisee will owe a late fee.

The late fee is calculated as the lesser of 5% per month of the late payment from the due date until it is paid, or the maximum rate allowable under applicable law. This means that Management Recruiters will charge whichever amount is lower, either the 5% or the highest amount legally permitted in the franchisee's jurisdiction.

This policy incentivizes timely payments and ensures Management Recruiters is compensated for the administrative burden and potential financial losses caused by overdue amounts. Prospective franchisees should be aware of this late fee policy and ensure they have sufficient financial planning to meet their payment obligations to Management Recruiters on time to avoid incurring these additional charges.