What is the late fee charged to a Beem Light Sauna franchisee for each week a payment is late?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
restimate 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 maximum rate permitted by law, if less than 18%). You also agree to pay us a late fee in the amount of $100 for each week that a payment is paid after the applicable due date. This late fee is subject to increase upon 60 days' prior written notice, provided that it will not exceed $250 per week.
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, they will incur a late fee of $100 for each week the payment is overdue. This late fee is in addition to daily interest accruing on the outstanding amount at a rate of 18% per annum, calculated from the original due date until the payment is made. The interest rate may be lower if the maximum rate permitted by law is less than 18%.
Beem Light Sauna retains the right to increase this late fee, but they must provide the franchisee with 60 days' prior written notice before doing so. Even with an increase, the late fee will not exceed $250 per week. It is important to note that assessing a late fee does not obligate Beem Light Sauna to accept late payments, and any late payments constitute a default under the Franchise Agreement.
This policy highlights the importance of timely payments to Beem Light Sauna. Franchisees should ensure they have systems in place to manage their finances effectively and meet all payment deadlines to avoid these additional costs and potential default on their agreement. The combination of a weekly late fee and daily interest charges can quickly add up, impacting the franchisee's profitability.