What is the interest rate for late fees charged to a Bft franchisee?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Late Fees | The lesser of (a) the highest applicable legal rate for open account business credit, or (b) 1.5% per month | Upon demand | Applies to all amounts not paid when due, until paid in full. We may also require you to pay an administrative fee of $50 for each late payment or late report. |
Source: Item 6 — OTHER FEES (FDD pages 21–26)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, if a franchisee fails to make payments on time, Bft charges a late fee. This late fee is the lesser of either (a) the highest applicable legal rate for open account business credit, or (b) 1.5% per month. This late fee applies to all amounts not paid when due, and continues to accrue until the full amount is paid.
In addition to the interest on the overdue amount, Bft may also charge an administrative fee of $50 for each late payment or late report. This administrative fee is separate from the interest charged on the outstanding balance.
Prospective Bft franchisees should be aware of these late fee policies and ensure they have sufficient financial resources to make timely payments to avoid incurring these additional costs. It is important to note that these late fees can significantly increase the overall cost of operating a Bft franchise if payments are consistently late.