What is the maximum interest rate charged on late payments to Precision Door Service?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
rect 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
Source: Item 22 — Contracts (FDD pages 91–92)
What This Means (2025 FDD)
According to Precision Door Service's 2025 Franchise Disclosure Document, late payments are subject to a fee of $10.00 per day, in addition to accruing interest. The interest is calculated at the highest applicable legal rate for open account business credit in the franchisee's state of domicile. However, the interest rate will not exceed 12.0% per annum.
This means that if a Precision Door Service franchisee is late on payments, they will incur a daily late fee of $10.00, and interest will be charged on the outstanding balance. The interest rate will depend on the state's legal rate for business credit, but it is capped at 12.0% per year.
Franchisees should be aware of these late payment terms and ensure that they make payments on time to avoid incurring these additional charges. It's also important to note that if a check is returned or an ACH draft is refused due to insufficient funds, Precision Door Service charges an insufficient funds fee of $50.