What is the interest rate charged on past due amounts owed to Best Brains?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Interest | 2% per month, or the maximum amount allowed by law, whichever is less | Owed on past due amounts | You must pay interest on any amounts owed to us from the date due until fully paid. FA Sec. 2(E). |
| Late Fee | $100 per incident | As incurred | Applies to each NSF check, late payment, or failure to timely provide reports and financial statements. FA Sec. 2(F). |
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, franchisees will be charged interest on any past due amounts owed to Best Brains. The interest rate is 2% per month, or the maximum amount allowed by law, whichever is less. This interest accrues from the date the payment was due until it is fully paid.
This means that if a franchisee is late on any payments to Best Brains, such as royalty fees, technology fees, or brand development fund contributions, they will incur interest charges on the outstanding balance. The 2% monthly interest rate can quickly add up, especially if the past due amount is substantial. Franchisees should prioritize timely payments to avoid these additional costs.
It's important to note that the interest rate is capped at the maximum amount allowed by law, which may vary depending on the jurisdiction. This provision protects franchisees from excessively high interest rates that may not be legally permissible. Franchisees should be aware of the applicable legal limits in their area.
In addition to interest, Best Brains also charges a late fee of $100 per incident for each NSF check, late payment, or failure to timely provide reports and financial statements. These penalties highlight the importance of franchisees maintaining good financial management and adhering to the payment terms outlined in the franchise agreement.