What happens if a payment to B Bops is not received on or before its due date?
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, any payment not received by B Bops 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 applicable state law mandates a lower maximum interest rate, that lower rate will be applied instead. This interest is calculated from the original due date until the payment is made in full.
This policy is fairly standard in franchising, as franchisors need to ensure timely payments to maintain their own financial obligations and support services for franchisees. Franchisees should, therefore, prioritize timely payments to avoid these additional charges and maintain a good financial standing with B Bops.