What is the post-maturity interest rate for the Promissory Note related to Beverly Anns Cookie?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
- A. Post-Maturity Interest. After maturity or acceleration, interest will accrue on the unpaid Principal balance of this Note at 18.000 percent until paid in full.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to Beverly Anns Cookie's 2025 Franchise Disclosure Document, the post-maturity interest rate for the Promissory Note is 18.000 percent. This rate applies to the unpaid principal balance after the note's maturity or if the obligation is accelerated.
This means that if a franchisee fails to pay the principal amount by the agreed-upon maturity date or if Beverly Anns Cookie accelerates the payment due to a breach of contract, the interest rate on the outstanding balance will increase to 18.000 percent. This higher rate continues to accrue until the principal and all accrued interest are paid in full.
It is important to note that the interest charged, including the post-maturity interest, will not exceed the maximum lawful amount allowed by applicable law. Any amount collected above this legal maximum will first be applied to reduce the unpaid principal balance, and any remaining overage will be refunded to the franchisee. This provision protects the franchisee from excessively high interest charges that may violate usury laws.