For Beverly Anns Cookie, what interest rate applies to collection expenses that are not paid immediately?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
On or after the occurrence of an Event of Default, to the extent permitted by law, I agree to pay all expenses of collection, enforcement or protection of your rights and remedies under this Note or any other Loan Document. Expenses include (unless prohibited by law) reasonable attorneys' fees, court costs, and other legal expenses. These expenses are due and payable immediately. If not paid immediately, these expenses will bear interest from the date of payment until paid in full at the highest interest rate in effect as provided for in the terms of this Note.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to Beverly Anns Cookie's 2025 Franchise Disclosure Document, if a franchisee incurs collection expenses due to an Event of Default and fails to pay them immediately, these expenses will accrue interest from the date of payment until fully paid. The interest rate applied to these unpaid collection expenses will be the highest interest rate in effect as provided for in the terms of the Note.
This means that a Beverly Anns Cookie franchisee needs to be aware that any delay in paying collection expenses can result in additional interest charges. The specific interest rate will depend on the terms outlined in the franchise agreement's promissory note. It is important for franchisees to understand the conditions that constitute an Event of Default to avoid triggering these collection expenses and associated interest.
Prospective Beverly Anns Cookie franchisees should carefully review the loan documents and franchise agreement to fully understand the interest rates that could apply to unpaid collection expenses. Understanding these terms can help franchisees manage their finances effectively and avoid unnecessary costs.