What interest rate does Spray Net charge on delinquent payments?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
| Name of Fee | Amount1 | Due Date | Remarks |
|---|---|---|---|
| Delinquency Charges and Interest7 | 18% per year, or higher rate as permitted by applicable law | Immediately after date payment is due. | Charged on all fees and accounts receivable due to us when not paid timely. In addition to this interest, we reserve the right to charge a late fee amounting to $500 in connection with any payment that is late or that we are not able to timely collect via your Payment Account due to insufficient funds at that time. You shall also pay $50 for each check given or electronic transfer made that is dishonored, fails to process or is returned. |
Source: Item 6 — > **ITEM 6 OTHER FEES (FDD pages 15–29)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, the interest rate for delinquency charges is 18% per year, or a higher rate if permitted by applicable law. This interest applies to all fees and accounts receivable due to Spray Net that are not paid on time.
In addition to interest, Spray Net reserves the right to charge a $500 late fee for any late payment or any payment they cannot collect on time due to insufficient funds. Franchisees will also be charged $50 for each dishonored check or failed electronic transfer.
These delinquency charges are designed to ensure timely payments from franchisees. It is important for prospective Spray Net franchisees to understand these potential costs and factor them into their financial planning. Consistently paying fees on time is crucial to avoid these additional expenses and maintain a positive financial relationship with Spray Net.