What interest rate does B Bops charge on past due 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 franchisee's payment is not received by the 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 charges interest on the past due amount at a rate of 1.5% per month. However, the FDD specifies that if the maximum interest rate permitted by applicable state law is less than 1.5% per month, then the maximum rate permitted by state law will be charged instead. This interest accrues from the date the payment was due until it is paid in full.
This policy is fairly standard in franchising, as franchisors need to ensure timely payments to maintain their own financial stability. The late fee and interest charges are designed to incentivize franchisees to make payments on time. Prospective franchisees should be aware of these terms and factor them into their financial planning to avoid incurring these additional costs.