What is the maximum payment processing fee reimbursement that Bang Cookies can charge?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
| Non-compliance | Actual fees, costs, and expenses | On demand | Fees, costs and expenses incurred by us as a result of your breach or noncompliance with the terms of your Franchise Agreement. |
|---|---|---|---|
| Supplier Review | Actual fees, costs, and expenses | Within 14 days of invoice | You must pay us the costs incurred by us to review and evaluate a potential supplier, product, or service that you submit to us for approval. |
| Management Service | Actual costs incurred by us | As invoiced | Payable if we elect to manage the Franchised Business due to a failure by you to have the Franchised Business managed by an authorized Managing Owner or Manager. |
| Transfer | $15,000 | On demand | Payable if we approve your transfer request, but prior to execution of final transfer agreements and authorization. |
| Renewal | $10,000 | On signing renewal Franchise Agreement | Payable if we approve your renewal request and upon signing our then current Franchise Agreement. |
| Payment Processing Fee Reimbursement | Up to 3.5% plus $0.30 per payment | Within 10 days of request for payment | If banks, credit card companies, or other payment processors charge us a fee for processing any payment you make to us, you must reimburse us for the amount of the fee. |
Source: Item 6 — OTHER FEES (FDD pages 13–17)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, franchisees may be required to reimburse Bang Cookies for payment processing fees. Specifically, if banks, credit card companies, or other payment processors charge Bang Cookies a fee for processing any payment made by the franchisee, Bang Cookies can require the franchisee to cover the cost.
The maximum reimbursement that Bang Cookies can charge is up to 3.5% of the payment amount, plus an additional $0.30 per payment. This means that for every transaction a franchisee makes to Bang Cookies where a processing fee is incurred, the franchisee will have to pay that fee, up to the specified limit.
This fee is due within 10 days of Bang Cookies requesting payment. It is important for prospective Bang Cookies franchisees to factor this potential expense into their financial planning, as it can impact their overall profitability. Franchisees should also ensure they understand what types of payments are subject to these fees and explore options for minimizing these costs where possible.