What is the 'Payment Non-Compliance Fee' for a Beard Papas franchise?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
y to Franchisor, Franchisor's affiliates, or Franchisor's designees all other fees, charges, and/or expenses set forth in this Agreement and in accordance with the terms of this Agreement. If no particular due date is stated in this Agreement then such date or dates shall be determined by Franchisor in Franchisor's Reasonable Business Judgment.
5.D. PAYMENT NON-COMPLIANCE FEES AND CHARGES
In addition to all other rights afforded to Franchisor under this Agreement, in connection with each and every fee, charge, and/or obligation payable and due from Franchisee to Franchisor under the terms of this Agreement including, but not limited to, this Article 5, within 14 days of Franchisor's invoice, Franchisee shall pay to Franchisor: (a) a payment non-compliance fee in the amount of $150 (the "Payment Non-Compliance Fee") for each and every instance where a fee, charge, and/or obligation payable to Franchisor under this Agreement is not paid in full when due; plus (b) interest on all unpaid fees, sums, and/or obligations payable and due from Franchisee to Franchisor at an interest rate equal to the lesser of either 18% per annum, or the maximum interest rate allowed by applicable law and with interest accruing on the date when such fee, sum, or obligation was due; plus (c) all costs incurred by Franchisor in the collection of such unpaid and past due obligations including, but not limited to, reasonable attorney's fees, costs, and expenses. Additionally, if Franchisee's bank account possesses insufficient funds and/or fails to process a payment related to any fee due to Franchisor, Franchisor may charge the greater of either (i) 5% of the amount (ii) $50 for each instances; or (iii) the maximum amount allowed by law. The foregoing does not
constitute Franchisor's agreement to accept payments after they are due or a commitment by Franchisor to extend credit to, or otherwise finance Franchisee's
Source: Item 23 — RECEIPTS (FDD pages 58–275)
What This Means (2025 FDD)
According to Beard Papas's 2025 Franchise Disclosure Document, if a franchisee fails to make any payment within 14 days of the invoice date, Beard Papas will charge a Payment Non-Compliance Fee. This fee is $150 for each instance of non-compliance.
In addition to the Payment Non-Compliance Fee, Beard Papas will also charge interest on all unpaid fees. The interest rate will be the lesser of 18% per annum or the maximum interest rate allowed by applicable law. Interest accrues from the date the payment was originally due.
Furthermore, the franchisee is responsible for covering all costs Beard Papas incurs while collecting the unpaid amounts, including reasonable attorney's fees, costs, and expenses. If a franchisee's bank account has insufficient funds or fails to process a payment, Beard Papas may charge the greater of either 5% of the amount or $50 for each instance, or the maximum amount allowed by law. These fees and charges do not obligate Beard Papas to accept late payments or extend credit to the franchisee.