What is the base amount Better Blend charges as a late fee?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| $100 plus interest on | We may charge a late fee if you fail to | ||
| the unpaid amount at | make a required payment when due. | ||
| a rate equal to 18% | |||
| per year (or, if such | |||
| payment exceeds the | |||
| maximum allowed | |||
| by law, then interest | |||
| at the highest rate | |||
| allowed by law) | |||
| $30 (or, if such | |||
| amount exceeds the | |||
| maximum allowed | |||
| by law, then the | |||
| maximum allowed | |||
| by law) |
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, if a franchisee fails to make a required payment when it is due, Better Blend may charge a late fee. This late fee consists of $100, plus interest on the unpaid amount. The interest rate is set at 18% per year, unless this exceeds the maximum interest rate allowed by law, in which case the highest legally permissible rate will apply. Additionally, Better Blend may impose a separate charge of $30, or the maximum amount allowed by law if $30 exceeds the legal limit.
In practical terms, this means a Better Blend franchisee could face multiple charges for a single late payment. First, there's a flat $100 fee. Second, interest accrues on the outstanding balance at a potentially high rate of 18% annually. Finally, a $30 charge could be added.
It's important for prospective Better Blend franchisees to understand these potential late fee charges and ensure they have systems in place to make timely payments. Failing to do so could result in significant additional costs beyond the original amount owed. Franchisees should clarify with Better Blend what constitutes a "required payment" and the specific procedures for avoiding late fees.