What is the annual interest rate charged by Bang Cookies on overdue amounts?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
| POS Fee | Currently $165 per month | As incurred | |
|---|---|---|---|
| Self-Serve Kiosk Fee | $279 per month or for 2 or more kiosks, $199 per month per kiosk | As incurred | |
| Interest | 18% per annum from due date | On demand | Payable on all overdue amounts, fees, charges, and payments due to us under the Franchise Agreement. Interest rate cannot exceed legal rate allowed by law and may be adjusted to reflect same. |
Source: Item 6 — OTHER FEES (FDD pages 13–17)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, overdue amounts are subject to an annual interest rate of 18%. This interest applies to all overdue amounts, fees, charges, and payments owed to Bang Cookies under the Franchise Agreement. The interest is calculated from the due date of the unpaid amount.
However, the FDD also states that the interest rate cannot exceed the maximum legal rate allowed by law. This means that if the legal limit for interest rates in a particular jurisdiction is lower than 18%, Bang Cookies will adjust its rate to comply with the law. This protects franchisees from potentially excessive interest charges that might violate local regulations.
Bang Cookies has the right to demand payment of this interest on overdue amounts. It is important for prospective franchisees to understand this policy and ensure timely payments to avoid incurring these interest charges. Franchisees should also be aware of the specific legal interest rate limits in their jurisdiction to ensure compliance.