What happens if any amount is not paid by a Beggars Pizza customer when due under the agreement?

According to Beggars Pizza's 2025 Franchise Disclosure Document, if a customer fails to pay any amount when due, the unpaid amount will incur interest. Specifically, any amount not paid by a customer when due under the agreement will bear interest at a rate of 1.5% per month, which is equivalent to 18% per year. However, if the maximum applicable legal rate is lower than 1.5% per month, the interest will be charged at the maximum legal rate instead. This interest will continue to accrue until the full amount is paid.

This policy incentivizes timely payments from customers to Beggars Pizza. The interest rate, while potentially standard for overdue commercial accounts, could deter some customers if they are aware of it. It's important for franchisees to understand how this interest accrual is managed and communicated to customers to avoid disputes.

For a prospective Beggars Pizza franchisee, this means that managing customer accounts and ensuring timely payments is crucial. The franchisee should have systems in place to track payments, send reminders, and apply interest charges as necessary. Clear communication with customers about payment terms and potential late fees is also essential to maintain good customer relations while protecting the business's financial interests.