For Marble Slab Creamery, what interest rate will be applied to overdue payments?
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 Marble Slab Creamery's 2025 Franchise Disclosure Document, any payment not received by the due date is considered overdue. If a payment is overdue, Marble Slab Creamery will charge interest on the overdue amount from the date it was due until it is paid. The interest rate will be 1.5% per month, or the maximum rate permitted by applicable law, whichever is less. The interest is calculated on a daily basis.
In addition to interest, Marble Slab Creamery also charges a late fee of $125 per week for each week the payment is not received. This interest and late charge are in addition to any other remedies Marble Slab Creamery may have.
This is a fairly standard practice in franchising. Franchise agreements typically include clauses that allow the franchisor to charge interest and late fees on overdue payments to encourage franchisees to make timely payments. Prospective franchisees should be aware of these potential charges and factor them into their financial planning.