determines that Franchisee has under-reported the Unit's Net Revenues, or underpaid Royalty or Advertising Fund Fees or other amounts due hereunder, Pretzel Time shall be authorized to initiate immediately a debit to Franchisee's account in the appropriate amount in accordance with the foregoing procedure, plus interest as provided for in this Agreement. Any overpayment shall be credited to Franchisee's account through a credit effective as of the first week after Franchisee and Pretzel Time determine that such credit is due. Notwithstanding any designation by Franchisee, Pretzel Time shall have the sole discretion to apply any payments by Franchisee to any past indebtedness of Franchisee for Royalty or Advertising Fund Fees, purchases from Pretzel Time and/or its Affiliates, interest or any other indebtedness, including, without limitation, payment of rental sums in arrears for the Unit. 4.I. LATE CHARGE AND INTEREST. To compensate Pretzel Time for the increased administrative expense of handling late payments, Pretzel Time may charge Franchisee a $50.00 late charge for each delinquent payment. All Royalty and Advertising Fund Fees, amounts due for purchases by Franchisee from Pretzel Time or its Affiliates, and other amounts which Franchisee owes to Pretzel Time or its Affiliates shall bear interest after their due date at a rate equal to the lesser of: (1) eighteen percent (18%) per annum for the number of days which such payment is due; or (2) the highest applicable legal rate permitted by applicable law. Franchisee acknowledges that this Section shall not constitute Pretzel Time's or its Affiliates' agreement to accept such payments after they are due or a commitment by Pretzel Time or its Affiliates to extend credit to or otherwise finance operation of the Unit. Notwithstanding the provisions of this Section 4.I., Franchisee acknowledges and agrees that his failure to pay all amounts when due shall