Under what condition is interest payable on disputed payments for Bevaris Alliance?

According to Bevaris Alliance's 2024 Franchise Disclosure Document, interest is payable on disputed payments under specific conditions. If a franchisee disputes a payment in good faith, interest on that amount is only payable after the dispute is resolved. The interest accrues on the sums found or agreed to be due, calculated from the original due date until the payment is made.

This means that Bevaris Alliance franchisees have some protection against accruing interest on payments they genuinely dispute. However, it's crucial that the dispute is made in good faith, implying an honest and reasonable disagreement. If the dispute is not considered legitimate, interest may accrue from the initial due date.

The interest rate applied to overdue amounts, including those initially disputed but later found to be due, is 10% per annum or the maximum percentage allowed by law, whichever is greater. This rate is relatively high compared to standard commercial interest rates, so resolving disputes quickly is in the franchisee's best interest.

This clause encourages both Bevaris Alliance and its franchisees to resolve payment disagreements efficiently. Franchisees should document their disputes thoroughly and seek resolution promptly to avoid unnecessary interest charges. Bevaris Alliance, on the other hand, is incentivized to address disputes fairly to maintain positive franchisee relations and avoid prolonged disagreements.