What is the monthly late fee charged by Monicals Pizza on overdue amounts?

According to Monicals Pizza's 2025 Franchise Disclosure Document, a franchisee may be assessed a late fee of 1.5% per month on all overdue fees owed to Monicals Pizza. However, the FDD specifies that if the highest rate allowed by the law of the state where the franchisee is located is less than 1.5% per month, the lower rate will apply. This late fee also applies to any understatement in amounts due revealed by an audit.

This means that if a Monicals Pizza franchisee fails to pay fees on time, they will incur a monthly late fee. The exact amount will depend on the overdue amount and the applicable state law, but it will not exceed 1.5% per month. Franchisees should be aware of this late fee and ensure that all payments are made on time to avoid incurring additional charges. The late fees begin within 5 days from the date payment was due, but not received, or date of underpayment.

Late fees are a common practice in franchising to encourage timely payments. Franchise agreements typically outline the specific late fee structure, including the percentage charged and the conditions under which it is applied. Franchisees should carefully review the franchise agreement to understand their obligations and the potential consequences of late payments.