Is there a maximum amount for the late charge on Beverly Anns Cookie loan payments?
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, a late charge will be applied if a payment is more than 10 days late. The late charge is calculated as 10% of the payment amount or $10.00, whichever is greater. However, the loan agreement specifies that the late charge will not exceed $100.00. This charge is applied only once for each late payment.
This means that if a Beverly Anns Cookie franchisee is late on a loan payment by more than 10 days, they will incur a late fee. The fee will be at least $10.00, but could be higher if 10% of the payment amount exceeds that. For example, if the payment is $500, the late fee would be $50 (10% of $500). However, regardless of the payment amount, the late fee will never be more than $100.00.
It's important for a prospective Beverly Anns Cookie franchisee to understand these terms to avoid incurring unnecessary charges. Franchisees should aim to make all loan payments on time to avoid late fees. Understanding the maximum late charge can help franchisees budget and plan accordingly, especially if they anticipate any potential difficulties in making timely payments.