What late penalty will Beverly Anns Cookie charge upon default of the loan?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
| Item Financed | One GRM/GRT and initial inventory pack | |-----------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | Amount Financed | The full purchase price of GRM/GRT (currently $137,451 to $144,451 for GRM and $85,753 - $89,753 for GRT ) less $20,000 down payment, plus purchase price of initial inventory pack (currently $10,995) | | Down Payment | Balance of purchase price after Financing amount has been determined (not less than $20,000) | | Term | 36 to 66 months (includes up to 6 months of deferments) | | APR % | (A Credit) 8.99% (regardless of enrollment in deferments) or (B Credit) 10.49% to 10.99% (with deferments); up to 11.99% for first year only under interest-only plan (if allowed); rates may vary based on swap rates. | | Monthly Payment | 36 to 66 monthly installments (includes up to 6 months of deferments); may vary according to amount financed | | Prepayment Penalty | One percent (1%) for each year or partial year remaining on the loan | | Security Required | Partner or shareholder and personal guarantee and pledge of the Franchise(2) | | Liability Upon Default | Late penalty of the higher of 10% of the amount due or $25.00, of amounts due; fees(3) as permitted by law; acceleration | | Loss of Legal Right On | Includes waiver of trial by jury and right to interpose any defense, | | Default | set-off, or counterclaim of any nature or description(4) | As
Source: Item 10 — FINANCING (FDD pages 33–37)
What This Means (2025 FDD)
According to Beverly Anns Cookie's 2025 Franchise Disclosure Document, if a franchisee obtains financing through Osgood Bank, the franchisee is liable for a late penalty upon default of the loan. The late penalty will be the higher of 10% of the amount due or $25.00, as permitted by law. In addition to the late penalty, Osgood Bank can accelerate the amounts due and charge fees.
If a franchisee obtains financing through Auxilior Capital Partners, the franchisee is also liable for a late penalty upon default of the loan. The FDD does not specify the exact amount of the late penalty charged by Auxilior Capital Partners. However, the franchisee is also responsible for acceleration of amounts due and fees.
It is important for a prospective Beverly Anns Cookie franchisee to understand the terms and conditions of the loan agreement, including the late penalty and other fees that may be charged upon default. A prospective franchisee should carefully consider their ability to repay the loan before entering into a franchise agreement.