What is the late payment fee charged by Precision Door Service per day?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
uthorize and direct your bank or financial institution to allow us or our affiliate to initiate a transfer of funds electronically directly to our or our affiliate's account and to charge to your account all amounts due to us or any affiliate. You must maintain a balance in your account sufficient to allow us and our affiliates to collect the amounts owed when due. You are responsible for any penalties, fines or other similar expenses associated with the transfer of funds described in this Section.
- E. Late Payments. A late payment fee of $10.00 per day (the "Late Payment Fee") plus interest at the highest applicable legal rate for open account business credit in the state of your domicile, not to exceed 12.0% per annum, will accrue on all late payments from the due date until all sums are paid. If a check is returned or an ACH draft is refused by your financial institution due to insufficient funds in you
Source: Item 22 — Contracts (FDD pages 91–92)
What This Means (2025 FDD)
According to Precision Door Service's 2025 Franchise Disclosure Document, a franchisee will incur a late payment fee of $10.00 per day for payments not made on time. This fee, referred to as the "Late Payment Fee", is in addition to interest that will accrue on all late payments. The interest is calculated at the highest applicable legal rate for open account business credit in the franchisee's state of domicile, but will not exceed 12.0% per annum. Both the Late Payment Fee and the interest accrue from the due date until all outstanding sums are paid in full.
In addition to late payment fees, Precision Door Service also charges an insufficient funds fee of $50 if a check is returned or an ACH draft is refused due to insufficient funds. Furthermore, if a franchisee fails to provide Gross Sales reports on time, Precision Door Service may withdraw the applicable License Fee based on the last reported Gross Sales from the franchisee's account. Once the Gross Sales report is available, the franchisee is required to immediately pay any additional amounts owed as shown in the calculation of the License Fees and MAP Fees in the report.
It is important for prospective Precision Door Service franchisees to understand these payment terms and ensure they have sufficient funds and adhere to the reporting deadlines to avoid incurring these additional fees and interest charges. Franchisees should also be aware that these fees are in addition to any other rights available to Precision Door Service, meaning that late or insufficient payments could potentially trigger further actions or penalties as outlined in the franchise agreement.