What is the minimum late fee that B Bops charges?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
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- E. Late Payment Charge and Interest. Any payment required to be made to Company (or any affiliate thereof) under the terms of this Agreement or pursuant to any other arrangement and not received on or before its due date shall be 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 receive
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 its due date is considered past due. If a payment is past due, B Bops franchisees must pay a late fee of $200, in addition to interest on the past due amount.
The interest is calculated at a rate of 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.
This policy ensures that B Bops franchisees are incentivized to make timely payments. Franchisees should be aware of these charges and ensure that all payments are made on time to avoid incurring these additional costs. It is common practice in franchising to charge late fees and interest on overdue amounts to protect the franchisor's revenue stream and encourage financial discipline among franchisees.