What is the interest rate charged on overdue payments to Ben Jerrys?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
er specified by BEN & JERRY'S from time to time. Concurrent with such payments, OPERATOR shall submit to BEN & JERRY'S any reports or statements required under Section 11.3 below. For any payments required under Section 4 or 12, OPERATOR shall, if requested by BEN & JERRY'S, make each such payment by separate cashier's check or shall establish an arrangement for electronic funds transfer or deposit of any payments required under Sections 4 or 12. OPERATOR shall comply with the payment and reporting procedures specified by BEN & JERRY'S in the Manual or otherwise in writing.
- 4.5.1 Any payment, contribution, statement, or report not actually received by BEN & JERRY'S on or before such date shall be overdue. If any contribution or payment is overdue, OPERATOR shall pay BEN & JERRY'S immediately upon demand, in addition to the overdue amount, interest on such amount from the date it was due until paid, at the rate of one and one-half percent (1.5%) per month, or the maximum rate permitted by law, whichever is less. Entitlement to such interest shall be in addition to any other remedies BEN & JERRY'S may have. If any payment or contribution submitted by check is returned or dishonored, OPERATOR shall pay BEN & JERRY'S immediately upon demand, in addition to the amount due, an amount established by BEN & JERRY'S from time to time to compensate BEN & JERRY'S for any fees or charges that BEN & JERRY'S incurs due to such returned or dishonored check.
Source: Item 22 — CONTRACTS (FDD pages 133–134)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, if a franchisee's payment is overdue, Ben Jerrys charges interest on the overdue amount from the date it was due until it is paid. The interest rate is 1.5% per month, or the maximum rate permitted by law, whichever is less. This interest charge is in addition to any other remedies Ben Jerrys may pursue.
Additionally, if an inspection reveals that any contributions or payments have been understated in any statement or report to Ben & Jerrys, the franchisee must immediately pay the understated amount upon demand. They will also be charged interest from the date such amount was due until paid, at the same rate of 1.5% per month, or the maximum rate permitted by law, whichever is less.
Furthermore, if a Ben Jerrys franchisee fails to cure a default within any applicable notice period, or if the agreement is terminated due to the franchisee's default, the franchisee must pay Ben Jerrys all damages, costs, and expenses. This includes late fees, collection fees, interest at 1.5% per month, or the highest permissible rate, and reasonable investigation and attorney's fees incurred by Ben Jerrys as a result of the default or termination. All such interest, damages, costs, and expenses may be included in the judgment awarded to Ben Jerrys in any proceedings brought against the franchisee.