What late fee does Afuri Ramen Dumpling charge franchisees on unpaid balances?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
2.8.2 A late charge will be added to any sums to be paid under this Agreement that remain unpaid after the date due. The late charge will equal 1.5% per month. In addition, late payments will be subject to a late payment penalty of 5% of the amount due. These late charges and late payment penalties will not exceed any limits placed upon late charges and late payment penalties by applicable local laws.
Our acceptance of late charges will not constitute a waiver of the breach created by your non-payment of any amount when due. Notwithstanding the payment of any late charges, we may exercise any rights or remedies granted by this Agreement upon your breach or any rights or remedies otherwise granted by law.
Nothing contained in this Agreement obligates us to accept any payments after due or to commit to extend credit to or otherwise finance your operation of the Franchise. You acknowledge that failure to pay all amounts when due will constitute grounds for termination of this Agreement.
2.8.3 Upon your failure to pay us as and when due, we may, at our election, deduct the unpaid sums from any monies or credit we hold for your account. You agree that you will not withhold payment of any amounts due to us on the grounds of any alleged non-performance by us, or in the event of any dispute or a claim by you, or for any other reason whatsoever.
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, a franchisee will be charged a late fee on any unpaid sums after the due date. The late fee consists of 1.5% per month, in addition to a 5% late payment penalty on the amount due. These late charges and late payment penalties will not exceed any limits placed upon late charges and late payment penalties by applicable local laws.
It is important to note that Afuri Ramen Dumpling's acceptance of late charges does not constitute a waiver of the breach created by the non-payment of any amount when due. Even with the payment of late charges, Afuri Ramen Dumpling may exercise any rights or remedies granted by the Franchise Agreement upon a franchisee's breach or any rights or remedies otherwise granted by law.
Afuri Ramen Dumpling is not obligated to accept any payments after the due date or to commit to extend credit to finance the franchisee's operation. Failure to pay all amounts when due constitutes grounds for termination of the Franchise Agreement. Afuri Ramen Dumpling may deduct unpaid sums from any monies or credit held for the franchisee's account. The franchisee is not allowed to withhold payment of any amounts due to Afuri Ramen Dumpling based on any alleged non-performance, dispute, claim, or any other reason.