What is the latest date that Pump It Up can debit interest from a business checking account?
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, interest will be debited from a franchisee's business checking account on all past due amounts as of the original due date. The interest rate is 1.5% per month or the highest commercial contract interest rate the law allows, whichever is less. The FDD states that this interest debit will occur 'upon demand,' meaning there is no fixed or latest date.
This means that Pump It Up has the right to debit interest from your account whenever there are past due amounts. The timing of this debit is at Pump It Up's discretion, as it is 'upon demand.' This differs from fees like royalties or brand fund contributions, which have specific due dates each month.
As a prospective franchisee, it is crucial to maintain timely payments to avoid incurring interest charges and potential debits from your business checking account. Understanding the 'upon demand' nature of this fee is important for managing your finances and relationship with Pump It Up. You should clarify with Pump It Up what their typical practices are for notifying franchisees before debiting interest charges.