What actions can Beem Light Sauna take if a franchisee is late on a royalty payment?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Late Fee and Interest | 18% per annum or maximum interest rate allowed by law (whichever is less) from due date to date of payment, plus $100 for each week that a payment is paid after the due date for the payment specified. | When amount owed becomes past due | Required whenever a payment to us is made after its due date. We may increase the amount of the late fee upon 60 days' prior written notice; however, it will not exceed $250 per week. |
Source: Item 6 — OTHER FEES (FDD pages 20–26)
What This Means (2025 FDD)
According to Beem Light Sauna's 2025 Franchise Disclosure Document, if a franchisee is late on a payment, including royalty payments, Beem Light Sauna will impose a late fee and interest. The interest accrues at a rate of 18% per annum, or the maximum interest rate allowed by law, whichever is less, calculated from the due date to the date the payment is made.
In addition to interest, Beem Light Sauna charges a $100 late fee for each week the payment is overdue. Beem Light Sauna retains the right to increase the late fee amount, providing 60 days' prior written notice. However, the late fee will not exceed $250 per week.
This policy is fairly standard in franchising. Franchisees should ensure timely payments to avoid these additional charges, as late fees and interest can add up quickly and impact profitability. Franchisees should also be aware that repeated late payments could potentially lead to further action from Beem Light Sauna, up to and including termination of the franchise agreement, though this excerpt does not explicitly state that.