What is the fee for default in paying fees to Big Apple Bagels?
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 be charged a fee for defaulting on payments. Specifically, Big Apple Bagels charges $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 if a Big Apple Bagels franchisee misses a payment, they have a 14-day grace period before the default fees kick in. After that, the franchisee will incur a $100 daily fee for every day the payment remains outstanding. This can quickly add up, creating a significant financial burden on top of the original unpaid amount.
It is important for prospective Big Apple Bagels franchisees to understand this policy and ensure they have sufficient financial resources to meet all payment obligations promptly. Franchisees should also maintain open communication with Big Apple Bagels regarding any potential payment issues to explore possible solutions and avoid incurring these default fees. Careful financial planning and diligent management are essential to avoid these penalties and maintain a healthy business relationship with the franchisor.