When does Monicals Pizza begin charging late fees for payments that are due but not received, or for underpayment?

According to Monicals Pizza's 2025 Franchise Disclosure Document, late fees are applied starting five days after a payment is due but not received, or from the date of any underpayment. The late fee is 1.5% per month or the highest rate allowed by the law of the state where the Monicals Pizza location is, whichever is less. This applies to all overdue fees owed to Monicals Pizza, including any understatements in amounts due that are revealed by an audit.

For a prospective Monicals Pizza franchisee, this means that it is crucial to ensure all payments are made on time and in the correct amount to avoid incurring late fees. Franchisees should be diligent in their accounting practices to prevent underreporting of gross sales or other amounts owed, as these discrepancies can also trigger late fees if discovered during an audit. The fact that late fees can be 'the highest rate allowed by the law of the state' means that franchisees need to be aware of the regulations in their specific state, as this could be significantly higher than the stated 1.5%.

Franchisees should also note that these late fees are in addition to other potential costs, such as audit expenses if underreporting is discovered. This highlights the importance of maintaining accurate financial records and adhering to the payment schedule outlined in the franchise agreement to minimize the risk of incurring additional expenses. The 'Upon demand' due date for late fees means that Monicals Pizza can request immediate payment of these fees once they are assessed.