When must I reimburse Bang Cookies for payment processing fees?
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, if banks, credit card companies, or other payment processors charge Bang Cookies a fee for processing any payment a franchisee makes to them, the franchisee must reimburse Bang Cookies for the amount of the fee. This reimbursement is due within 10 days of Bang Cookies's request for payment. The payment processing fee reimbursement can be up to 3.5% plus $0.30 per payment.
This means that as a Bang Cookies franchisee, you are responsible for covering any payment processing fees that Bang Cookies incurs when you make payments to them. These fees can arise from various payment methods, such as credit cards or electronic transfers. The amount you'll have to reimburse can vary depending on the payment processor's fees, but it is capped at 3.5% of the payment amount plus an additional $0.30 per payment.
It is important for prospective franchisees to factor this potential expense into their financial planning. While the percentage may seem small, these fees can add up over time, especially with frequent payments. Franchisees should maintain accurate records of all payments made to Bang Cookies and the associated processing fees to ensure timely and accurate reimbursements. Understanding this policy is crucial for managing your cash flow and maintaining a positive financial relationship with Bang Cookies.