Besides the past due amount, what other fees are charged by B Bops for late payments?
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 |
Source: Item 6 — OTHER FEES (FDD pages 14–18)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, if a payment is not received on or before its due date, it is considered past due. In addition to the past due amount, B Bops charges a late fee of $200.
Furthermore, B Bops also charges interest on the past due amount. The interest rate is 1.5% per month, or if less, the maximum rate permitted by applicable state law. This interest is calculated on the past due amount from the date it was due until it is paid in full.
Prospective franchisees should be aware of these late payment fees and ensure timely payments to avoid incurring these additional costs. It is important to note that these fees are in addition to the original amount due, potentially increasing the financial burden on the franchisee if payments are not made on time.