When is the late fee due to Monicals Pizza?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Late Fees3 | 1.5% per month or the highest rate allowed by the law of the state where you are located, whichever is less | Upon demand | Applies to all overdue fees you owe us. Also applies to any understatement in amounts due revealed by an audit. |
- 3 Late fees begin within 5 days from the date payment was due, but not received, or date of underpayment.
Source: Item 6 — OTHER FEES (FDD pages 10–12)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, late fees are applied to all overdue fees owed to them, as well as any understatement in amounts due revealed by an audit. The late fee is 1.5% per month or the highest rate allowed by the law of the state where the franchisee is located, whichever is less.
Monicals Pizza assesses these late fees beginning within 5 days from the date payment was due, but not received, or date of underpayment. This means a franchisee has a very short grace period before incurring additional charges. It is important for prospective franchisees to ensure timely payments to avoid these fees, as they can accumulate quickly.
Many franchise systems have late fees to encourage prompt payments, but the specific terms can vary. Franchisees should be aware of Monicals Pizza's policy and factor it into their financial planning to maintain a healthy relationship with the franchisor and avoid unnecessary costs.