When is the Late Payment Interest applied to overdue amounts owed to Black Bear Diner?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee(1) | Amount | Due Date |
|---|---|---|
| Audit Expenses | Cost of audit plus interest | As invoiced |
| 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, late payment interest is applied to overdue amounts after the due date. The interest rate is 18% of the overdue amount, calculated daily, or the maximum rate permitted by law, whichever is less. This means that if a franchisee fails to make a payment on time to Black Bear Diner, they will incur interest charges on the outstanding balance.
The daily calculation of interest can quickly increase the amount owed, making it crucial for franchisees to adhere to the payment schedule. The clause specifying "or the maximum rate permitted by law, whichever is less" protects the franchisee from excessively high interest rates if state or federal laws impose lower limits.
Prospective franchisees should be aware of this late payment policy and ensure they have sufficient financial planning to avoid late fees. Understanding the due dates for all fees, such as royalties (4.5% of Gross Sales, paid weekly), marketing fund contributions (1% of Gross Sales, paid weekly), and local advertising fees (1% of Gross Sales, paid monthly), is essential to maintaining a good financial standing with Black Bear Diner.