What is the administrative fee charged to 7 Brew franchisees for each late or dishonored payment?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
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| Column 1 | Column 2 | Column 3 | Column 4 |
|---|---|---|---|
| Type of Fee(1, 6) | Amount(2) | Due Date | Remarks |
| Supplemental Training You Request to be Provided at Your Store | Up to $1,500 per trainer per day plus expenses | As incurred | If you request training courses or programs to be provided locally, you must pay our then-current training fee and our training personnel's travel and living expenses. |
| Testing and Evaluation Costs | Actual testing/evaluation costs incurred (amount depends on circumstances, including supplier's location, testing required, and item involved) | As incurred | Covers our actual costs of testing new products/services or inspecting new suppliers you propose. |
| Relocation | $5,000 plus reasonable costs we incur | As incurred | Due only if you relocate Store with our approval. |
| Audit | Reimbursement of cost of inspection or audit, including legal fees and independent accountants' fees, plus travel expenses, room and board, and compensation of our employees (amount depends on nature and extent of your non compliance) | As incurred | Due if you fail to report or understate Gross Sales by 2% or more. |
| Interest | Lesser of 1.5% per month or highest commercial contract interest rate law allows | When invoiced | Due on past due amounts. |
| Administrative | $100 | When invoiced | Due for each late or dishonored |
| Fee |
Source: Item 6 — OTHER FEES (FDD pages 16–23)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, franchisees will be charged an administrative fee of $100 for each late or dishonored payment. This fee is invoiced to the franchisee when a payment is late or dishonored.
This means that if a franchisee's payment is not made on time or is rejected by the bank due to insufficient funds or other reasons, 7 Brew will assess a $100 administrative fee. This is in addition to any other penalties or interest that may be charged on the overdue amount. Franchisees need to ensure that their payments are made on time and that sufficient funds are available to avoid incurring this fee.
It is important for prospective franchisees to factor this potential cost into their financial planning and to maintain diligent financial management practices to avoid late or dishonored payments. This administrative fee is a fairly standard practice in franchising, intended to cover the franchisor's administrative costs associated with handling late or dishonored payments.