What is the maximum interest rate Baya Bar can charge on overdue amounts?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
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| (1) | (2) | (3) | (4) |
|---|---|---|---|
| Fees (1) | Amount | Due Date | Remarks |
| Pre-Opening Training (For New or Replacement Employees) | Our then-current per session training fee, plus expenses Current per session training fee = $3,000 | Before Training | We will train up to three people at no additional charge. If you request that we provide our pre-opening training program to any additional employees, or to new or replacement employees during the term of your Franchise Agreement, you must pay our training fee as well as the trainees' expenses, including travel, lodging, meals and wages. |
| Additional Onsite Training/Remedial Training | Our then-current per diem rate per trainer, plus expenses Current per diem rate = $600 | When billed | If you request that we provide additional training or support at your Shop, or if as the result of an inspection or quality assurance audit we believe that remedial training is necessary, you must pay our daily fee for each trainer we send to your Shop, and you must reimburse each trainer's expenses, including travel, lodging and meals. |
| 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 |
| Audit Fee | Cost of audit (estimated to be between $1,000 and $5,000) | When billed | Payable only if we find, after an audit, that you have understated Gross Sales by 2% or more or you have understated any amount you owe to us. You must also pay the u |
Source: Item 6 — OTHER FEES (FDD pages 11–16)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, Baya Bar can charge interest on all overdue amounts. The interest rate is 18% per annum or the highest interest rate allowed by applicable law, whichever is less. The interest accrues from the original due date until the payment is received in full.
For a prospective franchisee, this means that if you fail to pay fees or other amounts owed to Baya Bar on time, you will be charged interest on the outstanding balance. The specific interest rate will depend on whether 18% per annum is lower than the maximum rate permitted by law in your jurisdiction. If the legal maximum is lower than 18%, that lower rate will apply.
Franchisees should be aware of the due dates for all payments to Baya Bar and ensure timely payments to avoid incurring interest charges. It is also important to understand the applicable laws in your state regarding maximum interest rates, as this could affect the amount of interest Baya Bar can legally charge. Franchisees should maintain open communication with Baya Bar regarding any potential payment issues to mitigate the risk of incurring interest on overdue amounts.