From what account will Pump It Up debit the late payment fee?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Late Payment Fee (1) | $75 for each day that any payment is late. | Due on demand. | We will debit the Late Payment Fee from your business checking account. |
| Interest (1) | 1.5% per month or the highest commercial contract interest rate the law allows, whichever is less. | Upon demand. | We will debit interest from your business checking account on all past due amounts as of the original due date. |
Source: Item 6 — OTHER FEES (FDD pages 15–21)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, the late payment fee will be debited from the franchisee's business checking account. The late fee is $75 for each day that any payment is late and is due on demand. This means that if a franchisee fails to make a payment on time, Pump It Up has the right to immediately withdraw $75 from the franchisee's business checking account for each day the payment is overdue.
Franchisees should ensure they have sufficient funds in their business checking account to cover any potential late payment fees. It is also important to note that Pump It Up also debits interest from the business checking account on all past due amounts as of the original due date. This interest is calculated at a rate of 1.5% per month or the highest commercial contract interest rate the law allows, whichever is less.
Automatic debits from a franchisee's account are a fairly common practice in franchising. This allows franchisors to efficiently collect royalties, advertising fees, and other payments. Franchisees should carefully review the payment terms in the Franchise Agreement and ensure they understand all fees and deadlines to avoid incurring late payment fees and interest charges.