What costs will Belocal franchisees reimburse N2 for in the event of late payments?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
All late payments shall bear interest at the lesser of 1.5% per month or the highest rate permissible under applicable law, calculated daily and compounded monthly.
Franchisee shall also reimburse N2 for all reasonable costs incurred by N2 in collecting any late payments, including, without limitation, attorneys' fees.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, franchisees are responsible for certain costs associated with late payments to N2. Specifically, late payments will incur interest. This interest is calculated at the lesser of 1.5% per month or the highest rate permissible by law, compounded monthly.
In addition to interest, Belocal franchisees must reimburse N2 for all reasonable costs N2 incurs while collecting late payments. These costs include, but are not limited to, attorney's fees. This means that if a franchisee is late on payments, they will not only be charged interest on the overdue amount but will also have to cover any legal expenses N2 incurs to recover the debt.
This provision highlights the importance of timely payments in the Belocal franchise system. Franchisees should ensure they have sufficient cash flow to meet their obligations to avoid these additional expenses. The potential for accruing interest and covering legal fees could significantly increase the financial burden on a franchisee experiencing payment difficulties.