What is the interest rate charged on late payments to Better Blend?
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) |
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 includes interest on the unpaid amount at a rate of 18% per year. However, if this interest rate exceeds the maximum rate allowed by law, Better Blend will charge the highest interest rate legally permitted.
In practical terms, this means that if a Better Blend franchisee is late on a payment, they will incur not only a late fee of $100, but also interest charges on the outstanding balance. The 18% annual interest rate is a significant cost, and it's crucial for franchisees to prioritize timely payments to avoid these charges. Franchisees should be aware of the due dates for all payments and ensure they have sufficient funds available to meet their obligations.
It's important to note that the interest rate may be adjusted to comply with applicable laws, which could vary depending on the franchisee's location. Franchisees should familiarize themselves with the specific regulations in their area to understand the potential maximum interest rate that could be applied to late payments. This late fee is in addition to other fees that Better Blend may charge, such as those for non-compliance with system standards or reimbursement for expenses incurred on the franchisee's behalf.