What is the late fee for past due payments to B Bops?
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 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 applicable state law mandates a lower maximum interest rate, that 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 systems. Franchisees should ensure they understand all payment due dates and plan accordingly to avoid these additional charges. It is important to note that these late fees and interest charges are in addition to any other remedies B Bops may have for non-payment, such as terminating the franchise agreement.