When are late fees due to Bft?
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, late fees are due upon demand. These fees apply to all amounts not paid when due, and continue to accrue until the outstanding balance is paid in full. The late fee will be the lesser of (a) the highest applicable legal rate for open account business credit, or (b) 1.5% per month.
In addition to the interest-based late fee, Bft may also require franchisees to pay an administrative fee of $50 for each late payment or late report. This administrative fee is separate from, and in addition to, the interest charged on the overdue amount.
For a prospective Bft franchisee, it's crucial to understand that late fees can accumulate quickly. Consistently paying on time and submitting reports promptly is essential to avoid these charges. Franchisees should factor in these potential costs when managing their finances and ensure they have systems in place to meet all payment and reporting deadlines.