What is the amount of the late fee for past due payments to B Bops, as described in Item 6?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee1 | Amount | Due Date | Remarks | |
|---|---|---|---|---|
| Royalty and service fee | 5% of gross sales.2, | Payable monthly on the 20th day of each month. |
| Late fee and interest on past due payments | $200 plus interest at 1.5% per month (or, if less, the maximum rate permitted by applicable state law) on amounts past due. | As incurred. | Any payment not received by the Company on or before its due date is deemed to be past due. If any payment is past due, you must pay the Company, in addition to the past due amount, a late fee of |
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, any payment not received by the company on or before its due date is considered past due. If a payment is past due, the franchisee must pay B Bops a late fee of $200, in addition to the past due amount.
Furthermore, interest accrues on the past due amount at a rate of 1.5% per month. However, if the maximum interest rate permitted by applicable state law is less than 1.5% per month, the franchisee will only be required to pay the maximum rate allowed by law. This interest is calculated from the original due date until the payment is made in full.
This late fee and interest charge apply to any payment due to B Bops under the terms of the Franchise Agreement or any other arrangement. This policy is fairly standard in franchising, as franchisors need to ensure timely payments to maintain their own financial stability and provide consistent support to all franchisees.