Is the insufficient funds fee charged by Better Blend capped by law?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
fee" plus interest on the unpaid amount at 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)
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, Better Blend may charge franchisees a fee of $30 for any payment returned due to insufficient funds. However, this fee is subject to a legal maximum. If $30 exceeds the maximum amount allowed by law, Better Blend will only charge the franchisee the legally permissible fee.
This means that the insufficient funds fee Better Blend charges may vary based on the franchisee's location and the applicable laws governing such fees. It is important for prospective franchisees to understand the specific regulations in their area to anticipate potential costs accurately.
This clause protects franchisees from excessively high fees that may be illegal while ensuring Better Blend can recover some costs associated with processing returned payments. Franchisees should consult with legal counsel to understand the specific limitations in their jurisdiction.