What is the minimum late charge for a Beverly Anns Cookie loan payment?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
ed 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 Beverly Anns Cookie's 2025 Franchise Disclosure Document, if a franchisee's payment is more than 10 days late, they will be charged 10% of the payment amount or $10.00, whichever is greater. Therefore, the minimum late charge is $10.00. This charge will not exceed $100.00 and will only be applied once for each late payment.
This late charge policy is fairly standard in the franchise industry. It incentivizes timely payments and compensates the lender for the administrative costs and potential financial risks associated with late payments. Franchisees should be aware of these terms to avoid incurring additional fees and to maintain a good financial standing with Beverly Anns Cookie.
It's important for prospective Beverly Anns Cookie franchisees to factor these potential charges into their financial planning. While the minimum late fee is $10.00, consistent late payments could lead to significant additional costs and potentially impact the franchisee's relationship with the lender. Understanding and adhering to the payment schedule outlined in the loan agreement is crucial for managing finances effectively and avoiding unnecessary expenses.