What is the late payment fee for Bhc, and how is the interest calculated on overdue amounts?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| requested by you. | |||
| Audit | $10,000 to $20,000 | On receipt of invoice | You will pay us the costs of an audit to be performed if you fail to provide monthly financial statements, or if a random audit shows an understatement of Gross Revenue in excess of 2%. (6) |
| Late payment | $100 per occurrence, plus, the lesser of the daily equivalent of 10% per year ("Interest"). | Upon demand | Interest is payable on entire overdue amount beginning with the date payment is due until payment, |
Source: Item 6 — Other Fees (FDD pages 12–18)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, a franchisee will incur a $100 late fee per occurrence for late payments. In addition to the late fee, Bhc charges interest on the overdue amount. The interest is calculated as the lesser of the daily equivalent of 10% per year or the maximum interest rate permitted by law in the state where the franchisee's Bhc restaurant is located.
The interest is applied to the entire overdue amount, starting from the original due date until the payment, late charge, and interest are paid in full. This means that the interest accrues daily on the outstanding balance, potentially increasing the total amount owed over time.
It is important for prospective Bhc franchisees to understand these late payment terms to avoid incurring additional fees and interest charges. Franchisees should ensure timely payments to maintain a good financial standing with Bhc and avoid any potential legal or financial repercussions associated with late payments.