When does the fee for default in paying fees to Big Apple Bagels begin to accrue?
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' 2025 Franchise Disclosure Document, a franchisee will incur a fee for default in paying fees beginning on the 15th day after the default. This fee amounts to $100 per day. This means that if a franchisee fails to pay any amounts when due to Big Apple Bagels, they have a grace period of 14 days before this daily penalty is applied.
This type of default fee is not uncommon in franchising. It is designed to incentivize franchisees to make timely payments and to compensate the franchisor for the administrative burden and potential financial losses caused by late payments. The relatively high daily fee of $100 underscores the importance Big Apple Bagels places on franchisees meeting their financial obligations promptly.
Prospective franchisees should be aware of this fee and ensure they have a system in place to manage their payments to Big Apple Bagels effectively. It would be prudent to discuss with existing franchisees how they handle payments and what strategies they use to avoid incurring default fees. Understanding the specific payment schedule and acceptable methods of payment is also crucial to avoid unintentional defaults.