When is the Payment Non-Compliance fee due 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. |
| Reporting Non-Compliance | $150 per occurrence | 14 days of invoice | Payable for failure to timely submit Royalty and Activity Reports, and other reports and financial statements as required under Franchise Agreement. |
| Operations Non-Compliance | $450 to $1,000 per occurrence | 14 days of invoice | Payable for failure to comply with operational standards as required and specified under Franchise Agreement, plus inspection and re-inspection costs incurred by us. |
| Payment Non-Compliance | $150 per occurrence | 14 days of invoice | Payable for failure to timely pay, when due, a fee or payment due to us under the Franchise Agreement, plus interest, costs and legal fees. |
Source: Item 6 — OTHER FEES (FDD pages 13–17)
What This Means (2024 FDD)
According to Bang Cookies' 2024 Franchise Disclosure Document, the Payment Non-Compliance fee is due 14 days from the date of the invoice. This fee, set at $150 per occurrence, is charged if a franchisee fails to make a payment to Bang Cookies on time, as required by the Franchise Agreement. Additionally, the franchisee will be responsible for covering any interest, costs, and legal fees associated with the late payment.
This policy means that if a Bang Cookies franchisee misses a payment deadline, they will incur not only the $150 non-compliance fee but also any additional costs Bang Cookies incurs as a result of the late payment. This could include interest on the overdue amount, as well as legal fees if Bang Cookies has to take action to recover the payment.
Franchisees should ensure they have systems in place to manage payments to Bang Cookies and meet all deadlines to avoid these fees. It is also important to understand the terms of the Franchise Agreement regarding payment schedules and acceptable payment methods to prevent unintentional non-compliance.