When is the late payment interest applied for Black Bear Diner?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee(1) | Amount | Due Date |
|---|---|---|
| Late Payment Interest | 18% of the overdue amount, calculated daily, or the maximum rate permitted by law, whichever is less | After due date |
Source: Item 6 — OTHER FEES (FDD pages 14–18)
What This Means (2025 FDD)
According to Black Bear Diner's 2025 Franchise Disclosure Document, a late payment interest is applied after the due date. This interest is 18% of the overdue amount, calculated daily, or the maximum rate permitted by law, whichever is less.
For a prospective Black Bear Diner franchisee, this means that if any payment is not made by its due date, interest charges will immediately begin to accrue. The interest rate is relatively high at 18% annually, but it will be capped at the maximum rate legally allowed if that rate is lower. The daily calculation of interest means that the longer the payment is overdue, the more significant the interest charges will become.
Franchisees should ensure all payments are made on time to avoid these charges. It's also important to understand the specific due dates for all fees, as outlined in the FDD, to prevent unintentional late payments. This policy is fairly standard in franchising, as franchisors need to ensure timely payments to maintain their own financial stability and provide ongoing support to the franchise system.