What is the assessment fee for a Big Apple Bagels electronic bank draft being dishonored?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Assessment for Electronic bank draft being Dishonored | $25 or $50 | On demand | You must pay a $25 assessment fee for each of the 1st 3 times in any calendar year an electronic bank draft we attempt is dishonored, due to insufficient funds or a change in your bank account; after the 1st 3 transactions per calendar year, the assessment fee is $50 each |
Source: Item 6 — OTHER FEES (FDD pages 21–25)
What This Means (2025 FDD)
According to Big Apple Bagels's 2025 Franchise Disclosure Document, the assessment fee for an electronic bank draft being dishonored is tiered. For the first three instances within a calendar year that an electronic bank draft is dishonored due to insufficient funds or a change in the franchisee's bank account, Big Apple Bagels will charge a fee of $25 per occurrence. This fee is due on demand.
After the first three dishonored transactions within the same calendar year, the assessment fee increases. For each subsequent dishonored electronic bank draft, Big Apple Bagels will charge a higher assessment fee of $50. This increased fee also becomes due on demand.
This tiered fee structure is designed to cover administrative costs associated with processing dishonored payments and may also serve as an incentive for franchisees to ensure sufficient funds are available or to promptly update their banking information to avoid these charges. Franchisees should maintain careful oversight of their bank accounts to avoid these fees, which can accumulate if electronic payments are repeatedly rejected.