For Monicals Pizza, how soon after a payment is due will late fees begin to accrue?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3 Late fees begin within 5 days from the date payment was due, but not received, or date of underpayment.
| 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. |
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 will begin to accrue if payment is not received within 5 days of the due date or in the event of an underpayment.
Specifically, a Monicals Pizza franchisee will incur late fees starting five days after a payment is due but not received, or if there is an underpayment. The late fee is 1.5% per month or the highest rate allowed by the law of the state where the franchise is located, whichever is less. This applies to all overdue fees owed to Monicals Pizza and any understatements in amounts due revealed by an audit.
This means that Monicals Pizza franchisees need to ensure timely and accurate payments to avoid these additional charges. Franchisees should be aware of the due dates for all fees, including royalty fees, marketing fund contributions (if established), and any other applicable fees, to prevent late fees from being applied. Additionally, franchisees should maintain accurate financial records to avoid underreporting amounts due, which could also trigger late fees if discovered during an audit.