What is the minimum late fee Better Blend charges?
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 of $30. The FDD specifies that this amount applies "or, if such amount exceeds the maximum allowed by law, then the maximum allowed by law." This means that the actual late fee could be lower than $30 if state or local laws impose a lower maximum.
In addition to the $30 late fee, Better Blend can also charge interest on the unpaid amount. This interest accrues at a rate of 18% per year, unless the law sets a lower maximum interest rate, in which case the highest legally permitted rate will apply.
It is important for prospective Better Blend franchisees to understand these potential late fee and interest charges, as failing to make timely payments can result in these additional costs. Franchisees should be aware of the specific regulations in their jurisdiction regarding maximum late fees and interest rates to understand the full extent of these potential charges.