From what date does interest accrue on overdue amounts owed to Baya Bar?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
| (1) | (2) | (3) | (4) |
|---|---|---|---|
| Fees (1) | Amount | Due Date | Remarks |
| Interest | 18% per annum or the highest interest rate allowed by applicable law, whichever is less | On demand | Interest may be charged on all overdue amounts. Interest accrues from the original due date until payment is received in full. * See below |
Source: Item 6 — OTHER FEES (FDD pages 11–16)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, interest accrues on all overdue amounts from the original due date until the payment is received in full. The interest rate is 18% per annum, or the highest interest rate allowed by applicable law, whichever is less.
This means that if a Baya Bar franchisee fails to pay any amount owed to the company by the specified due date, interest charges will begin to accumulate from that original due date. This includes fees, royalties, or any other payments outlined in the franchise agreement.
For a prospective franchisee, this highlights the importance of making timely payments to Baya Bar to avoid incurring interest charges. It's crucial to understand the due dates for all fees and other obligations and to ensure that payments are made promptly. Franchisees should also be aware of the applicable interest rate in their state, as it may be lower than the 18% stated in the FDD.