From what date does Mr. Sandless calculate interest on late payments or underpayments?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
Any late payment or underpayment of the royalty or advertising fee (as described in Section 13.4 below), and any other charges or fees you owe us or our affiliates, will bear interest from the original due date until such amount is paid in full at the lesser of eighteen percent (18%) interest per year or the highest lawful interest rate which may be charged for commercial transactions in the state in which your Business is located. Nothing contained in this Section shall prevent us from exercising, in our sole judgment, any other rights or remedies available to us under this Agreement.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, any late payment or underpayment of royalties, advertising fees, or any other charges owed to Mr. Sandless or its affiliates will accrue interest. This interest calculation begins from the original due date of the payment and continues until the amount is paid in full.
The interest rate applied to these overdue amounts will be the lesser of two options: eighteen percent (18%) per year, or the highest lawful interest rate that can be charged for commercial transactions in the state where the franchisee's Mr. Sandless business is located. This ensures that the interest charged remains within legal limits while also compensating Mr. Sandless for the delayed payment.
This policy does not prevent Mr. Sandless from pursuing other available rights or remedies under the Franchise Agreement, should they choose to do so. This means that in addition to charging interest on overdue amounts, Mr. Sandless retains the right to take further action to recover the debt or address the breach of contract. Franchisees should be aware of this clause and ensure timely payments to avoid these additional financial and legal repercussions.