What is the interest rate applied to overdue amounts owed by a Southern Steer franchisee?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
t first designating a new account and notifying the Franchisor of the new account information. The Franchisee will be responsible for all fees imposed by its bank or financial institution in connection with the Franchisee's EFT payment of the Fees.
- (c) Interest; Late Charge; Insufficient Fund Fee. All amounts, Fees and charges which Franchisee owes to Franchisor, its Affiliates or service providers will bear interest from the date due until fully paid at 18% per annum or the maximum rate allowable by applicable law, whichever is less. Franchisor may also assess its current late charge and insufficient fund fees for any late payments and for Franchisee's failure to timely submit required reports to Franchisor. The Franchisee will, on demand, reimburse the Franchisor for the actual costs incurred by the Franchisor in the collection of any past-due Fees from the Franchisee, including reasonable attorneys' fees and costs.
- (d) Application of Payments; Off Set.
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, any outstanding amounts, fees, and charges owed by a franchisee to Southern Steer, its affiliates, or service providers will accrue interest from the due date until fully paid. The interest rate is set at 18% per annum, or the maximum rate permitted by applicable law, whichever is less.
In addition to interest, Southern Steer may also impose late charges and insufficient fund fees for overdue payments and for a franchisee's failure to submit required reports on time. Furthermore, the franchisee is responsible for reimbursing Southern Steer for all actual costs incurred in the collection of any past-due fees, including reasonable attorney's fees and costs.
Southern Steer retains the sole discretion to apply any payments received from the franchisee to any past due indebtedness of the franchisee, their Operating Principal, Owners, Guarantors, or the franchisee's affiliates, regardless of when the debt was incurred or to interest. The franchisee's obligation to pay fees to Southern Steer is absolute and unconditional for the entire initial term of the agreement and any interim period.