How does Pump It Up collect interest on past due amounts?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| 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, if a franchisee has past due amounts, Pump It Up will charge interest. The interest rate is 1.5% per month, or the highest commercial contract interest rate the law allows, whichever is less.
Pump It Up will debit the interest from the franchisee's business checking account on all past due amounts, calculated from the original due date. This means that interest accrues from the moment a payment is late, not from a later date of notification or demand.
This is a fairly standard practice in franchising, as franchisors need to ensure timely payments to maintain their own financial stability and provide consistent support to all franchisees. The specific interest rate is clearly defined in the FDD, allowing prospective franchisees to understand the financial implications of late payments.