What interest rate will 7 Brew charge on late payments?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
not subordinate to any other obligation your obligation to pay us Royalties, Brand Fund contributions, Tech Fees, or any other amounts due under this Agreement.
E. Administrative Fee and Interest on Late Payments
In addition to our other remedies, including, without limitation, the right to terminate this Agreement under Section 18, if you fail to pay (or make available for withdrawal from your account) when due any amounts you owe us or our affiliates relating to this Agreement or the Store, those amounts will bear interest, accruing as of their original due dates, at one-and-one-half percent (1.5%) per month or the highest commercial contract interest rate the Law allows, whichever is less. In addition, you must pay us a One-Hundred Do
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, if a franchisee fails to make payments when due, the outstanding amounts will accrue interest from the original due date. The interest rate will be the lesser of one-and-one-half percent (1.5%) per month or the highest commercial contract interest rate allowed by law.
In addition to interest on late payments, 7 Brew also charges a One-Hundred Dollar ($100) administrative fee for each late or dishonored payment. This fee is intended to cover the increased costs and expenses incurred by 7 Brew due to the franchisee's failure to pay on time.
This policy is fairly standard in franchising, as franchisors need to ensure timely payments to maintain their own financial stability and support the franchise system. Franchisees should be aware of these penalties and ensure they have systems in place to manage payments effectively to avoid incurring these additional costs.