When is interest on overdue amounts owed to Baya Bar due?
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 on overdue amounts is due on demand. Baya Bar may charge interest on all overdue amounts at a rate of 18% per annum, or the highest interest rate allowed by applicable law, whichever is less.
Interest accrues from the original due date until the full payment is received. This means that if a franchisee is late on any payment to Baya Bar, interest charges will begin accruing from the initial date the payment was due, not just from the date of the demand for payment.
This policy is fairly standard in franchising, as it incentivizes timely payments. Franchisees should be aware of this policy and ensure they make all payments on time to avoid incurring interest charges. It is also important to note that the interest rate may vary depending on the applicable law, so franchisees should check the laws in their specific jurisdiction.