When is a payment considered past due 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, a payment is considered past due if it is not received by B Bops on or before its due date. If a payment is past due, the franchisee must pay B Bops a late fee of $200, in addition to the past due amount. Interest will also be charged at a rate of 1.5% per month, or the maximum rate permitted by applicable state law if it is less than 1.5%. This interest is calculated on the past due amount from the original due date until the payment is made in full.
This policy is fairly standard in franchising, as franchisors rely on timely payments from franchisees to maintain their own financial stability and provide ongoing support. The late fee and interest charges are designed to incentivize franchisees to make payments on time and to compensate B Bops for the administrative costs and potential financial losses associated with late payments.
For a prospective B Bops franchisee, this means it is crucial to understand the due dates for all fees and other payments required under the Franchise Agreement and to ensure that payments are made promptly. Setting up reminders or automatic payments can help avoid late fees and interest charges. Franchisees should also be aware of the potential impact of late payments on their relationship with B Bops, as repeated late payments could be grounds for termination of the Franchise Agreement.