For Marble Slab Creamery, what condition determines when a payment or report is considered overdue?
Marble_Slab_Creamery Franchise · 2025 FDDAnswer from 2025 FDD Document
r overestimates any fee due to Franchisor and collect the same from Franchisee, then Franchisor will credit the surplus amounts paid against fees due in the next payment period (once Franchisor receives accurate records regarding the Net Sales of the Restaurant operated under this Agreement).
- 4.7 Any payment or report not actually received by Franchisor on or before the due date will be deemed overdue. If any payment is overdue, Franchisee will pay Franchisor, in addition to the overdue amount, interest on such amount from the date it was due until paid at the rate of one and one-half percent (1.5%) per month, or the maximum r
Source: Item 22 — CONTRACTS (FDD page 101)
What This Means (2025 FDD)
According to the 2025 Marble Slab Creamery FDD, a payment or report is considered overdue if it is not actually received by the franchisor on or before the specified due date. This means that the date the payment or report is sent does not matter; Marble Slab Creamery must physically receive it by the due date.
For a prospective franchisee, this highlights the importance of ensuring timely delivery of all payments and reports. To avoid late fees and potential breaches of the franchise agreement, franchisees should consider using reliable delivery methods and submitting payments and reports well in advance of the due date.
If a payment is overdue, Marble Slab Creamery charges interest on the overdue amount from the date it was due until it is paid. The interest rate is 1.5% per month or the maximum rate permitted by applicable law, whichever is less, calculated on a daily basis. Additionally, a late charge of $125 per week is applied for each week the payment is not received. These charges are in addition to any other remedies Marble Slab Creamery may pursue, so it is crucial to prioritize on-time submissions.