What is the Payment Non-Compliance fee for a Bang Cookies franchise?
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's 2024 Franchise Disclosure Document, the Payment Non-Compliance fee is $150 per occurrence. This fee is charged if a franchisee fails to make a payment to Bang Cookies on time, as required by the Franchise Agreement.
In addition to the $150 fee, the franchisee is also responsible for covering interest, costs, and legal fees associated with the late payment. The payment is due within 14 days of the invoice date. This policy incentivizes franchisees to ensure timely payments to Bang Cookies to avoid incurring these additional expenses.
Franchisees should be diligent in managing their finances and adhering to the payment schedule outlined in the Franchise Agreement to avoid this fee. It's also important to understand the specific payment terms and acceptable methods to ensure compliance and prevent any unintentional delays or issues that could lead to the assessment of this fee.