What is the interest rate charged by Ben Jerrys on overdue payments?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee1/ | Amount | Due Date | Remarks |
|---|---|---|---|
| Refresher Training, but we may do so in the future, at our discretion | |||
| Audit by Franchisor | Cost and expenses connected with inspection and audit (including travel, lodging, and wage expenses, and reasonable accounting and legal costs) | Upon demand | Payable if audit reveals understatement of 3% or more in the financial reports you delivered to us |
| Re-Inspection Fee | Will vary under circumstances | Upon demand | You must reimburse us for travel expenses and room and board for our representatives if we determine based on an unsatisfactory inspection that re-inspection is required |
| Interest on Overdue Payments | 1.5% per month, or maximum rate permitted by law | Upon demand | Payable on overdue amounts. As of the date of this Disclosure Document, we are not charging such a fee but we may do so in the future, at our discretion. |
Source: Item 6 — OTHER FEES (FDD pages 23–28)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, the interest rate on overdue payments is 1.5% per month, or the maximum rate permitted by law. This interest is payable on overdue amounts and is due upon demand. While Ben Jerrys is not charging this fee as of the date of the disclosure document, they may do so in the future at their discretion.
For a prospective franchisee, this means that if you fail to make payments on time to Ben Jerrys, you could be charged interest on the overdue amount. The rate will be 1.5% per month, which annualizes to 18%, or the maximum rate allowed by applicable law if that is lower. It is important to note that while Ben Jerrys isn't currently charging this fee, they reserve the right to implement it in the future.
Franchisees should be aware of this potential charge and factor it into their financial planning. Ensuring timely payments will help avoid incurring these interest charges. It's also worth noting that many franchise agreements include similar clauses regarding interest on overdue payments, so this is not necessarily unusual. Franchisees should maintain open communication with Ben Jerrys to stay informed about any changes in fee policies.