What is the interest rate charged by Bb.Q Chicken on overdue amounts?
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. |
Source: Item 6 — OTHER FEES (FDD pages 15–21)
What This Means (2025 FDD)
According to the 2025 Bb.Q Chicken Franchise Disclosure Document, overdue amounts are subject to an interest charge. Bb.Q Chicken charges interest at a rate of 18% per annum, or the highest interest rate allowed by applicable law, whichever is greater. This interest begins accruing from the original due date of the unpaid amount until the payment is received in full by Bb.Q Chicken.
For a prospective Bb.Q Chicken franchisee, this means that failing to pay fees or other amounts owed to Bb.Q Chicken on time can result in significant additional costs. The 18% annual interest rate is a substantial penalty and could quickly increase the total amount owed. Franchisees should ensure they have systems in place to manage payments and meet deadlines to avoid incurring these interest charges.
It's important to note that the interest rate could be even higher than 18% if local laws permit a higher rate. Franchisees should be aware of the laws in their specific jurisdiction and how they might affect the interest charged on overdue amounts. This policy is fairly standard in franchising, as franchisors need to ensure timely payments to maintain their own financial stability and provide consistent support to all franchisees.