What is the late charge for payments not received by the due date for a Beverly Anns Cookie loan?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
ue to changes in the Equipment configuration accepted by you which may occur prior to our acceptance of this Loan. Restrictive endorsements on checks you send to us will not reduce your obligations to us. For any payment which is not received by its due date, you agree to pay a late charge equal to the higher of 10% of the amount due or $25.00 (not to exceed the maximum amount permitted by law), as reasonable collection costs.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to Beverly Anns Cookie's 2025 Franchise Disclosure Document, if a payment is not received by its due date, a franchisee will be charged a late fee. There are two different loan agreements detailed in the FDD, each with different late charge terms. One loan agreement states the late charge is equal to the higher of 10% of the amount due or $25.00, not to exceed the maximum amount permitted by law. The other loan agreement states the late charge is equal to the greater of 5% of the amount due or $25.00, not to exceed the maximum amount permitted by law.
It is important to note that these late charge policies are part of the loan agreements that a Beverly Anns Cookie franchisee may enter into. The specific loan agreement and its terms, including the late charge policy, will depend on the individual agreement between the franchisee and the lender.
Prospective franchisees should carefully review the specific loan agreements presented to them and understand the terms and conditions, including the late charge policy. It is advisable to seek legal and financial advice to fully understand the implications of these loan agreements before signing.