What is the Baya Bar policy regarding interest charges on overdue amounts?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
---|
| (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, interest may be charged on all overdue amounts. The interest rate is 18% per annum, or the highest interest rate allowed by applicable law, whichever is less. Interest accrues from the original due date until payment is received in full. For franchisees in California, the maximum interest rate is 10% annually.
This means that if a Baya Bar franchisee fails to pay fees or other amounts owed to the franchisor on time, they will be subject to interest charges. The specific interest rate will depend on the agreement and applicable state law, but it could be as high as 18% annually. The interest will continue to accumulate until the full overdue amount is paid.
Prospective franchisees should be aware of this policy and ensure they have sufficient funds to pay all fees and other amounts owed to Baya Bar on time to avoid incurring interest charges. It is also important to understand the specific interest rate that will apply in their state, as this may be lower than the standard 18% rate. Franchisees should also note that if an audit reveals understated gross sales by 2% or more, they will be required to pay the understated amount plus interest.