What is the late fee charged by Punch King Fitness for payments made more than 5 days late?
Punch_King_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
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| Name of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| exceed the amount equal to $100 per month. | |||
| Late Fees | $50 | Upon demand | A late fee must be paid on any payment to us that is more than 5 days late. |
| Interest | 10% per annum | Upon demand | In addition to the Late Fee, interest is assessed on any payment to us that is more than 30 days late. The interest accrues from the date the payment was due. |
| Insurance3 | Amount of premium paid by Punch King Fitness, Inc. plus 20% | Upon demand | If you do not purchase insurance coverage as required, you must reimburse us this amount to secure insurance coverage. |
| Delinquent Report Submission | $10 per day | Upon demand | If you fail to submit a report to us by more than 5 days late from when it was due, you must pay us this amount. |
| Additional Training and Conventions4 | $500 per day plus travel expenses for additional onsite support; $500 per attendee of additional training, national conventions, and for new or replacement managers to attend the initial training | Upon your registration for the training or convention | You must pay the current training fee for training and support beyond the initial training and National Co |
Source: Item 6 — OTHER FEES (FDD pages 10–16)
What This Means (2024 FDD)
According to Punch King Fitness's 2024 Franchise Disclosure Document, a franchisee will be charged a $50 late fee for any payment made more than 5 days past the due date. This fee is in addition to any other fees that may be assessed. The late fee is due upon demand from Punch King Fitness.
In addition to the late fee, Punch King Fitness also charges interest on late payments. If a payment is more than 30 days late, interest will be assessed at a rate of 10% per annum. This interest accrues from the original date the payment was due, meaning the franchisee will be responsible for the accumulated interest from the initial due date, not just from the 30-day mark.
It is important for prospective Punch King Fitness franchisees to understand these late payment penalties and ensure timely payments to avoid incurring these additional costs. Franchisees should set up systems to track payment due dates and ensure payments are made promptly to avoid the $50 late fee and potential 10% per annum interest charges.