When does the daily fee for default in paying fees begin for Big Apple Bagels franchisees?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
HER FEES**
A. FRANCHISE AGREEMENT
| 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 i |
Source: Item 6 — OTHER FEES (FDD pages 21–25)
What This Means (2025 FDD)
According to Big Apple Bagels's 2025 Franchise Disclosure Document, a franchisee will incur a fee of $100 per day for failing to pay amounts when due. This fee begins accruing on the 15th day after the initial default. This means that Big Apple Bagels franchisees have a grace period of 14 days after the payment due date before this daily penalty is applied.
It is important for prospective Big Apple Bagels franchisees to understand the implications of this fee. Failing to pay fees on time can quickly lead to a significant accumulation of debt, as the $100 per day fee adds up rapidly. Franchisees should ensure they have sufficient financial resources and implement robust accounting practices to avoid late payments and the associated penalties.
Many franchise systems have late payment fees, but the specifics can vary. Some may charge a percentage of the outstanding balance, while others, like Big Apple Bagels, impose a fixed daily fee. Franchisees should carefully review the fee schedules in the FDD and franchise agreement to fully understand their obligations and the potential costs of non-compliance.