What are some examples of Non-Compliance Fees that a Bang Cookies franchisee might be charged?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
shall pay to Franchisor, Franchisor's affiliates, or Franchisor's designees all other fees, charges, and/or expenses set forth in this Agreement and in accordance with the terms of this Agreement. If no particular due date is stated in this Agreement then such date or dates shall be determined by Franchisor in Franchisor's Reasonable Business Judgment.
5.D. PAYMENT NON-COMPLIANCE FEES AND CHARGES
In addition to all other rights afforded to Franchisor under this Agreement, in connection with each and every fee, charge, and/or obligation payable and due from Franchisee to Franchisor under the terms of this Agreement including, but not limited to, this Article 5, within 14 days of Franchisor's invoice, Franchisee shall pay to Franchisor: (a) a payment non-compliance fee in the amount of $150 (the "Payment Non-Compliance Fee") for each and every instance where a fee, charge, and/or obligation payable to Franchisor under this Agreement is not paid in full when due; plus (b) interest on all unpaid fees, sums, and/or obligations payable and due from Franchisee to Franchisor at an interest rate equal to the lesser of either 18% per annum, or the maximum interest rate allowed by applicable law and with interest accruing on the date when such fee, sum, or obligation was due; plus (c) all costs incurred by Franchisor in the collection of such unpaid and past due obligations including, but not limited to, reasonable attorney's fees, costs, and expenses. Additionally, if Franchisee's bank account possesses insufficient funds and/or fails to process a payment related to any fee due to Franchisor, Franchisor may charge the greater of either (i) 5% of the amount; (ii) $50 for each instances; or (iii) the maximum amount allowed by law. The foregoing does not constitute Franchisor's agreement to accept payments after they are d
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, franchisees may incur several types of non-compliance fees. One example is a "Payment Non-Compliance Fee" of $150 for each instance where a payment, charge, or obligation to Bang Cookies is not paid in full when due. This fee is in addition to other penalties.
In addition to the $150 fee, Bang Cookies also charges interest on all unpaid amounts. The interest rate is the lesser of 18% per annum or the maximum interest rate allowed by applicable law, accruing from the original due date. Franchisees are also responsible for covering all collection costs incurred by Bang Cookies, including reasonable attorney's fees and expenses.
Furthermore, if a franchisee's bank account has insufficient funds or fails to process a payment, Bang Cookies may charge an additional fee. This fee is the greater of either 5% of the amount due or $50 for each instance, or the maximum amount allowed by law. These fees do not represent an agreement by Bang Cookies to accept late payments or extend credit to the franchisee.