What is the monthly interest rate charged on late payments for a Beauty Bungalows franchise?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
imum of $250 per week ("Royalty Fee"). The Royalty Fee is due to Franchisor, without notice from Franchisor, on the 10th day of each month. Royalties must be reported in a form specified by Franchisor.
- 5.04 Late Charges and Other Fees. Unless otherwise stated, Franchisee must pay a late fee of $100 for each day the Royalty Fee (or such other payment due under this Agreement) remains unpaid, provided, however, that the $100 per day late fee will not exceed $500 during any calendar month. Franchisee must also pay interest at the rate of one and one-half percent (1.5%) per month for any late payments due under this Agreement, or the maximum interest rate allowed by applicable law, whichever is less Franchisee must pay any damages, expenses through appeal, collection costs, and reasonable attorneys' fees Franchisor incurs in connection with Franchisee's failure to make any required payments. We may charge you $500 if your business is not in compli
Source: Item 22 — CONTRACTS (FDD pages 47–48)
What This Means (2025 FDD)
According to the 2025 Beauty Bungalows Franchise Disclosure Document, franchisees must pay a monthly royalty fee, and late payments are subject to interest. Specifically, Beauty Bungalows charges a monthly interest rate of 1.5% for any late payments due under the Franchise Agreement.
In addition to the interest charge, Beauty Bungalows also imposes a late fee of $100 for each day the royalty fee or any other payment remains unpaid. However, the total late fee is capped at $500 for any calendar month.
Prospective franchisees should be aware of these late payment penalties and ensure they have sufficient financial planning to cover royalty payments and other fees on time to avoid incurring these additional costs. It's also important to note that the interest rate could be adjusted to align with the maximum interest rate allowed by applicable law, if lower than 1.5%.