Can a franchisor charge interest on outstanding fees?
- Joel K
Owned by Joel K
Question
Can a franchisor charge interest on outstanding franchise fees?
Answer
Yes, you can charge interest on outstanding franchise fees as per clause 7.9 of the Franchise Agreement:
“If, for any reason payment of fees and charges pursuant to this agreement cannot be effected on the due date, the Franchisor may apply an interest charge on the outstanding fees in accordance with the Penalty Interest Rates Act 1983.”
A quick google search for the Act should provide you with it.