What interest rate does B Bops charge on past due amounts?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
deemed past due. If any payment is past due, Franchisee agrees to pay Company (or such affiliate), in addition to the past due amount, a late fee of Two Hundred Dollars ($200) plus interest on the past due amount at the rate of one and one-half percent (1-1/2%) per month, or the maximum rate permitted by the law of the state in which the Franchise is located, whichever may be less, commencing as of the due date and continuing until Company has received payment in full.
- F. Books and Records. Franchisee agrees to maintain true and correct books and records in which shall be recorded all gross sales and which shall be prepared in accordance with generally accepted accounting principles and utilizing such bookkeeping forms and employing such bookkeeping procedures as Company may from time to time direct.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, any payment not received by the due date is considered past due. B Bops charges a late fee of $200, in addition to interest on the past due amount.
The interest rate applied to past due amounts is 1.5% per month, or the maximum rate permitted by the law of the state in which the franchise is located, whichever is less. This interest accrues from the original due date until B Bops receives the full payment.
Additionally, if an audit reveals a deficiency in royalties or fees, B Bops charges interest on the deficiency at the same rate of 1.5% per month, or the maximum rate allowed by state law, whichever is less. This applies to any underpayment of royalties or fees discovered through an audit of the franchisee's records.