What is the interest rate charged by Benihana on late payments, and under what condition might it be lower?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
- (2) Interest, payable upon demand, begins from the date of the non-payment or underpayment to the date of payment at a rate of 18% per annum or the maximum rate allowed by applicable law, if that maximum legal is less than 18% per annum.
Source: Item 6 — OTHER FEES (FDD pages 18–21)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, if a franchisee makes a late payment to Benihana, the interest rate charged on the overdue amount is 18% per annum. However, the interest rate could be lower if the maximum rate allowed by applicable law is less than 18% per annum. In that case, Benihana will charge the maximum rate permitted by law.
This interest charge applies to any overdue amounts owed to Benihana, including royalties, advertising contributions, and other fees. The interest is payable upon demand and accrues from the date of non-payment or underpayment until the date the payment is made.
Prospective Benihana franchisees should be aware of this late payment policy and ensure they have sufficient funds to cover all payments to Benihana in a timely manner to avoid incurring interest charges. It is also important to understand the laws in their specific jurisdiction regarding maximum interest rates to know if a lower rate might apply.