From when 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 may be charged on all overdue amounts. This interest begins accruing from the original due date until the full payment is received. The interest rate is set at 18% per annum, or the highest interest rate allowed by applicable law, whichever is less.
For a prospective Baya Bar franchisee, this means that if any payments are not made on time, interest charges will be applied retroactively from the initial due date. This could include various fees owed to Baya Bar, such as royalty fees, marketing fund fees, or other charges outlined in the agreement.
It is important for franchisees to manage their finances carefully and ensure timely payments to avoid incurring these interest charges. Franchisees should be aware of the specific due dates for all fees and plan accordingly to prevent any overdue amounts. The potential for an 18% annual interest rate, or the maximum legally permissible rate, highlights the importance of adhering to the payment schedule to minimize financial penalties.