What interest rate will 7 Brew charge on past due amounts?
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 traini |
Source: Item 6 — OTHER FEES (FDD pages 16–23)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, if a franchisee has past due amounts, 7 Brew will charge interest. The interest rate is the lesser of 1.5% per month or the highest commercial contract interest rate that the law allows. This interest is due when invoiced.
This means that if a 7 Brew franchisee fails to pay fees or other amounts owed to the company on time, they will incur interest charges on the outstanding balance. The specific interest rate applied will depend on the prevailing legal limits for commercial contracts in the relevant jurisdiction, but it will not exceed 1.5% per month.
Franchisees should be aware of this policy and ensure timely payments to avoid these additional costs. It is common practice in the franchise industry for franchisors to charge interest on overdue amounts to compensate for the administrative burden and potential financial impact of late payments.