What is the interest rate charged on overdue amounts due to Bft Franchisor?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
- 5.11 Interest and Late Charges. Amounts due to Franchisor (except interest on unpaid amounts due) not paid when due shall bear interest from the date due until paid at the lesser of one and one-half percent (1.5%) per month or the highest rate of interest allowed by law. Franchisor may also recover its reasonable attorneys' fees, costs and other expenses incurred in collecting amounts owed by Franchisee.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, amounts that are overdue to Bft will incur interest. Specifically, any amounts due to Bft that are not paid when due will bear interest from the date the payment was due until it is paid.
The interest rate applied to these overdue amounts will be the lesser of two options: one and one-half percent (1.5%) per month, or the highest rate of interest allowed by law. This means Bft will charge whichever rate is lower, ensuring compliance with applicable legal limits on interest rates.
In addition to interest on overdue amounts, Bft may also seek to recover reasonable attorney's fees, costs, and other expenses incurred while collecting the overdue amounts from the franchisee. This provision highlights the importance of franchisees making timely payments to avoid these additional financial burdens.