What is the late charge for Beverly Anns Cookie if a payment is more than 10 days late?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
maturity date. - Loan. A(n) Loan fee of $200.00 payable from the loan proceeds.
- 5. REMEDIAL CHARGES. In addition to interest or other finance charges, I agree that I will pay these additional fees based on my method and pattern of payment. Additional remedial charges
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to the 2025 Beverly Anns Cookie Franchise Disclosure Document, if a payment is more than 10 days late, the franchisee will be charged 10% of the payment amount or $10.00, whichever is greater. However, the late charge will not exceed $100.00, and it will only be applied once for each late payment.
This means that if a franchisee's payment is, for example, $50, the late charge would be $10 because 10% of $50 is $5, and the greater of $5 and $10 is $10. If the payment was $500, the late fee would be 10% of that amount, or $50. If the payment was $2,000, 10% would be $200, but the franchisee would only be charged $100 because that is the maximum late fee.
Franchisees should be aware of these late charge terms to avoid incurring additional fees. It is important to note that this late charge is in addition to any interest or other finance charges that may apply. Franchisees should also be aware of other potential remedial charges, such as returned payment fees, which in this case is up to $28, and stop payment fees, which are also $28.