When is interest payable on disputed sums 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 accrues from the original due date until the payment is made, but only on the portion of the payment that is ultimately determined to be due.

This means that Bevaris Alliance franchisees have some protection against paying interest on amounts they genuinely dispute. However, it's important to note that interest will still be charged on any portion of the disputed amount that is eventually found to be owed. The interest rate applied to overdue amounts is 10% per annum, or the maximum percentage allowed by law, whichever is greater.

This clause encourages franchisees to resolve disputes promptly, as interest will continue to accrue on any outstanding balance once the dispute is settled. Franchisees should ensure they have a legitimate basis for disputing a payment to avoid potential interest charges. It is also important to note that the interest is calculated on a daily basis.