What interest rate will Beem Light Sauna charge on delinquent fees?
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 Beem Light Sauna's 2025 Franchise Disclosure Document, if a franchisee fails to make payments on time, Beem Light Sauna will charge daily interest on the outstanding amount. This interest is calculated from the due date until the payment is made in full. The interest rate is set at 18% per annum, but if the maximum rate permitted by law is less than 18%, the legally allowed lower rate will be applied.
In addition to interest, Beem Light Sauna also imposes a late fee of $100 for each week that a payment remains unpaid after the due date. However, Beem Light Sauna retains the right to increase this late fee, provided they give franchisees 60 days' prior written notice. Even with such notice, the late fee will not exceed $250 per week.
Beem Light Sauna emphasizes that these late payment provisions do not constitute an agreement to accept payments after they are due. Any late payments are considered a default under the Franchise Agreement. Franchisees should be aware of these financial implications and ensure timely payments to avoid incurring interest and late fees, and to prevent defaulting on their agreement.