What is the interest rate charged by Moes Southwest Grill on late payments?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
ecords; Reporting), the data of the point-of-sale system and other equipment provided for in Section 12.8 (Computer System), the results of an audit, or the payment obligations specified in this Agreement or any other agreement between you and us or our affiliates. If you fail to report the Net Sales of the Franchised Business to us for any reporting period as required in this Agreement, we have the right to make bank transfers or drafts for Royalty Fees and Advertising Contributions based on our reasonable estimate of the amounts for the Franchised Business and/or the data of the point-of-sale system and other equipment provided for in Section 12.8.
- 3.5 Interest. You must pay us interest on amounts not paid on time at the rate of 1.5% per month or
Source: Item 22 — Contracts (FDD page 92)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, Moes Southwest Grill charges interest on late payments. Specifically, if a franchisee fails to pay amounts on time, Moes Southwest Grill will charge interest at a rate of 1.5% per month, or a portion of a month that the payment is late. However, the interest rate will not exceed the maximum interest rate permitted by applicable laws.
In addition to interest on late payments, Moes Southwest Grill may also charge a late reporting fee if a franchisee fails to submit timely, complete, and accurate reports, financial statements, tax returns, and statements of initial investment costs. The late reporting fee is currently $50 per week for each report, statement, or return that is late. Moes Southwest Grill retains the right to increase this late reporting fee each calendar year, but the increase will not exceed the Allowed Adjustment.
Prospective franchisees should be aware of these potential fees and interest charges, as they can add to the overall cost of operating a Moes Southwest Grill franchise. It is important to ensure that all payments and reports are submitted on time to avoid incurring these additional expenses. Franchisees should also familiarize themselves with the specific requirements for reporting and payment to ensure compliance with the franchise agreement.