What is the Beverly Anns Cookie borrower's obligation to pay interim interest?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
e of the Equipment upon delivery and hereby authorizes the commencement of the Loan ("Commencement Date").
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- PAYMENT. You agree to pay us the Loan Payments when each payment is due. If we designate the Loan Payment to begin later than the Commencement Date, you will pay interim interest on the Principal Amount from the commencement Date until the first Loan Payment due date. Interim interest shall be equal to the pro rata portion of the daily equivalent of the Loan interest rate. Payment is due whether or not you receive an invoice from us. Restrictive endorsements on checks you send to us will not reduce your obligations to us. For any
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to Beverly Anns Cookie's 2025 Franchise Disclosure Document, if the loan payment is set to begin after the Commencement Date, the borrower is obligated to pay interim interest on the principal amount from the Commencement Date until the first loan payment due date. This interim interest is calculated as the pro rata portion of the daily equivalent of the loan interest rate.
This means that a Beverly Anns Cookie franchisee taking out a loan will accrue interest from the date the loan begins until the date the first regular loan payment is due. This interest is based on the daily interest rate of the loan, so the longer the period between the loan commencement and the first payment, the higher the interim interest will be.
The franchisee is responsible for making this payment whether or not they receive an invoice. Additionally, the document states that any restrictive endorsements on checks will not reduce the borrower's obligations. If a payment is not received by its due date, a late charge will be applied, equal to the greater of 5% of the amount due or $25.00, not exceeding the maximum amount permitted by law.