When is interest payable on disputed sums found to be due under the Bevaris Alliance agreement?

According to the 2024 Bevaris Alliance Franchise Disclosure Document, interest on disputed payments is only payable after the dispute is resolved. Specifically, if a franchisee disputes a payment in good faith, interest at a rate of 10% per annum, or the maximum percentage allowed by law (whichever is greater), will accrue on the outstanding amount from the original due date until the payment is made. However, this interest only becomes payable once the dispute is settled and the franchisee is found to owe the disputed amount.

This clause protects Bevaris Alliance by ensuring they receive compensation for overdue amounts, while also providing a degree of fairness to franchisees who genuinely dispute charges. The interest accrues from the initial due date, discouraging franchisees from delaying legitimate payments through frivolous disputes. The interest rate is set at 10% per annum or the maximum legal rate, which ensures compliance with applicable laws and provides a clear financial incentive for prompt payment once a dispute is resolved.

For a prospective Bevaris Alliance franchisee, this means that if they have a legitimate reason to dispute a payment, they won't be charged interest on that amount while the dispute is ongoing. However, it's crucial to act in good faith and have a valid basis for the dispute. If the dispute is resolved in favor of Bevaris Alliance, the franchisee will be responsible for paying the original amount plus interest from the initial due date. This underscores the importance of carefully reviewing all charges and addressing any concerns promptly and reasonably.

It is important to note that the interest is calculated from the original due date, not from the date the dispute is resolved. This means that the longer the dispute takes to resolve, the more interest will accrue. Therefore, it is in the franchisee's best interest to resolve any disputes as quickly as possible to minimize the amount of interest that may be owed. Franchisees should also ensure they have proper documentation and communication with Bevaris Alliance to support their dispute and demonstrate good faith.