What interest rate will Best Brains charge on overdue amounts?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
For and in consideration of good and valuable consideration, the undersigned promises to pay to the order of Best Brains, Inc. ["Holder"] at 135 E. Algonquin Road, Suite B, Arlington Heights, Illinois 60005, or at Holder's option, at such other place as may be designated from time to time by Holder, the amount stated above, together with interest at the rate of 0% per annum on the unpaid balance computed from the date provided above, payable as follows:
[insert repayment terms]
Interest under this Note will be calculated on the basis of a 360-day year consisting of twelve 30-day months.
Source: Item 23 — RECEIPTS (FDD pages 42–190)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, the interest rate charged on the unpaid balance is 0% per annum. This applies to amounts owed to Best Brains, Inc., as stated in the document. The interest is calculated based on a 360-day year, consisting of twelve 30-day months.
This means that if a franchisee owes Best Brains money under the terms outlined in the note, no interest will accrue on the outstanding balance. This is a notable benefit for franchisees, as it eliminates the cost of interest on any delayed payments covered by this specific agreement.
However, it is important to note that this 0% interest rate applies specifically to the note described in this section of the FDD. It is essential for prospective franchisees to clarify whether this rate applies to all potential overdue amounts or if other fees or payment terms outlined elsewhere in the Franchise Agreement may carry different interest charges or penalties for late payments. Franchisees should carefully review all sections of the agreement related to fees and payments to fully understand their financial obligations and potential costs.