What interest rate will My Salon Suite charge on late payments?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
ough EFT from Franchisee's designated bank account for the difference; or (ii) that the actual amount of the fee due was less than the amount of the EFT, then Franchisor shall credit the excess amount to the payment of Franchisee's future obligations.
- (3) Right to Modify Payment Interval or Method. Franchisor reservesthe right to modify its method or interval for collecting any fees Franchisee must pay under this Franchise Agreement upon notice to Franchisee, and Franchisor may provide such notice via the Manual or any other manner that Franchisor deems appropriate.
- G. Late Payments and Interest. Any amounts due to the Franchisor under this Franchise Agreement, including without limitation, Royalty Fees and Fund Contributions and amounts due for purchases made by Franchisee from Franchisor or its Affiliates, that are not received by Franchisor (or, if appropriate, its Affiliate) by the due date for said payment will bear interest until it is paid in full at the lesser of the rate of one and one half percent (1.5%) per month, or the maximum rate permitted by law. If any check or EFT payment is not successful due to insufficient funds, stop payment, or any similar event, Franchisee shall pay Franchisor One Hundred Dollars ($100) per occurrence. In addition, if Franchisee fails to remit to Franchisor any Royalty Fee
Source: Item 23 — RECEIPTS (FDD pages 95–230)
What This Means (2025 FDD)
According to My Salon Suite's 2025 Franchise Disclosure Document, any amounts due to My Salon Suite that are not received by the due date will bear interest. This includes, but is not limited to, Royalty Fees, Fund Contributions, and amounts due for purchases made by the franchisee from My Salon Suite or its affiliates.
The interest rate applied to these late payments will be the lesser of two options: 1.5% per month, or the maximum rate permitted by law. This means that My Salon Suite will charge whichever rate is lower, ensuring compliance with applicable legal limits on interest rates.
In addition to interest on late payments, My Salon Suite also charges $100 per occurrence if a check or EFT payment is unsuccessful due to insufficient funds, stop payment, or a similar event. Furthermore, if a franchisee fails to remit Royalty Fee payments, Fund Contributions, or Technology Fees when due, My Salon Suite can charge a late fee of $50 for each day the payment is late. The franchisee is also responsible for covering all costs incurred by My Salon Suite in the collection of any unpaid amounts, including reasonable accounting and legal fees.