How much interest may Marble Slab Creamery charge on overdue invoices?
Marble_Slab_Creamery Franchise · 2025 FDDAnswer from 2025 FDD Document
(g) If for any reason Customer fails to pay any invoice issued pursuant to or in connection with this Agreement when due, MSF may charge Customer interest at eighteen percent (18%) per annum, or the highest rate allowed by applicable law, until paid in full.
Additionally, MSF shall have the right to stop performing the Services until Customer pays in full all amounts owed under this Agreement.
Source: Item 23 — RECEIPT (FDD pages 101–346)
What This Means (2025 FDD)
According to the 2025 Marble Slab Creamery FDD, if a franchisee fails to pay any invoice when it is due, Marble Slab Creamery has the right to charge interest. This interest accrues at a rate of eighteen percent (18%) per annum, or the highest rate allowed by applicable law, until the invoice is paid in full.
This means that a prospective Marble Slab Creamery franchisee could face a significant financial penalty for late payments. The 18% annual interest rate is substantially higher than typical bank lending rates, making it an expensive form of credit. Franchisees should prioritize timely payments to avoid these charges, as well as the potential disruption of services, since Marble Slab Creamery can halt services until all outstanding amounts are paid.
It is important to note that the interest rate is capped at the highest rate allowed by applicable law. This implies that if state or federal laws impose a lower maximum interest rate, that lower rate would apply instead of the 18%. Franchisees should be aware of the relevant laws in their jurisdiction to understand the maximum interest rate that Marble Slab Creamery can legally charge.