When does interest accrue on overdue amounts owed to Bb.Q Chicken?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
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| (1) | (2) | (3) | (4) |
|---|---|---|---|
| Fees (1) | Amount trainees that cannot be accommodated is $1,000 per person. | Due Date | Remarks training fee as well as the trainees' expenses, including travel, lodging, meals and wages. |
| Additional On-Site | Our then-current per person training fee, plus the trainer's actual expenses. Current per person training fee = $1,000 | When billed | If you request that we provide the second round of our initial training program for additional days at your Restaurant or Food Truck, you must pay our per person training fee for each person we train at your Restaurant or Food Truck, and you must reimburse our trainer's expenses, including travel, lodging and meals (You must provide lodging in three-star hotels and daily meals in the amount of $60.) |
| Training | |||
| Non-Sufficient Funds | $100 per occurrence | As incurred | If your check is returned or an electronic funds transfer from your bank account is denied, for each occurrence, we may charge you a Nonsufficient Funds Fee. If you incur three non-sufficient funds fees in any 12 months period, we have the right to terminate your Franchise Agreement" |
| Fee | |||
| Interest | 18% per annum or the highest interest rate allowed by applicable law, whichever is greater | On demand | Interest may be charged on all overdue amounts. Interest accrues from the original due date until payment is received in full |
| 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 any amount you owe to us or Gross Sales by 2% or more. You must also pay the understated amount plus interest. This fee may be charged to you twice during the term of your Franchise Agreement. If it is discovered a third time that you have u |
Source: Item 6 — OTHER FEES (FDD pages 15–21)
What This Means (2025 FDD)
According to Bb.Q Chicken's 2025 Franchise Disclosure Document, interest may be charged on all overdue amounts at a rate of 18% per annum, or the highest interest rate allowed by applicable law, whichever is greater. This interest accrues from the original due date until the full payment is received. Bb.Q Chicken can demand this payment at any time.
For a prospective franchisee, this means that failing to pay fees on time can result in significant additional costs. The 18% annual interest rate is a substantial penalty, and it's crucial to manage finances carefully to avoid falling behind on payments. Franchisees should be aware of all due dates and ensure timely payments to avoid these interest charges.
Many franchise agreements include clauses about late payment interest, but the specific rate can vary. Franchisees should compare this rate to typical rates and understand their obligations to avoid unnecessary financial burdens. Given that Bb.Q Chicken can demand payment of this interest at any time, it is imperative to prioritize timely payments.