What is the annual interest rate charged on late payments to Beem Light Sauna?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
ed on our estimate, plus 20% of our estimate. If we underestimate any fees due, you will remain obligated to pay the total amount of fees due, which, if we institute an automatic debit program, we may debit from your account automatically. If we overestimate any fees due, we will credit the fees paid (without interest) against fees due in the next payment period after we receive accurate records regarding your Gross Sales.
- 3.17 Interest; Late Fee. If any payment due to us is not received in full by the due date, you agree to pay us daily interest on the amount owed, calculated from the due date until paid, at the rate of 18% per annum (or the ma
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
According to the 2025 Beem Light Sauna Franchise Disclosure Document, if a franchisee fails to make payments on time, Beem Light Sauna charges daily interest on the outstanding amount. This interest is calculated from the date the payment was due until it is fully paid.
The annual interest rate applied to late payments is 18%, but the FDD specifies that if the maximum interest rate permitted by law is less than 18%, the legal maximum will be applied instead. In addition to interest, Beem Light Sauna also charges a late fee of $100 for each week a payment is late.
It's important to note that Beem Light Sauna retains the right to increase this late fee with 60 days' prior written notice, although the fee will not exceed $250 per week. The FDD also clarifies that accepting late payments does not constitute an agreement to accept future payments late and that any late payments are considered a default under the Franchise Agreement.