When is interest payable on overdue amounts to Bang Cookies?
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, interest is payable on all overdue amounts, fees, charges, and payments due to Bang Cookies under the Franchise Agreement. The interest, set at 18% per annum from the due date, is payable on demand. However, the interest rate cannot exceed the legal rate allowed by law and may be adjusted to reflect the legal rate.
This means that if a Bang Cookies franchisee fails to make payments on time, they will incur an interest charge on the outstanding balance. The 18% annual interest rate could significantly increase the amount owed over time, making it crucial for franchisees to manage their finances carefully and ensure timely payments. The fact that interest is payable on demand gives Bang Cookies the flexibility to request immediate payment of accrued interest.
The clause specifying that the interest rate cannot exceed the legal rate provides some protection to the franchisee, ensuring they won't be charged an illegally high interest rate. This is a fairly standard practice in franchising, as franchisors typically need to comply with applicable usury laws.
Prospective franchisees should be aware of this interest provision and factor it into their financial planning. Understanding the terms and conditions for overdue payments is essential for maintaining a healthy financial relationship with Bang Cookies and avoiding unnecessary expenses.