What is the maximum interest rate Body Brain Center can charge on late payments?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
If any sums due under this Agreement have not been received by us when due (or there are insufficient funds in your Account to cover any sums owed to us when due) then, in addition to those sums, you must pay us interest on the amounts past due at the rate equal to the lesser of 18% per annum (prorated on a daily basis), or the highest rate permitted by your State's law.
Source: Item 23 — RECEIPT (FDD pages 43–178)
What This Means (2025 FDD)
According to the 2025 Body Brain Center Franchise Disclosure Document, if a franchisee fails to make payments on time, Body Brain Center can charge interest on the past due amount. The interest rate will be the lesser of 18% per annum, prorated daily, or the highest rate permitted by the franchisee's state law.
This means that if a franchisee's state law allows for a maximum interest rate higher than 18%, Body Brain Center is still limited to charging only 18%. Conversely, if a state's maximum allowable interest rate is lower than 18%, that lower rate will apply. This ensures that Body Brain Center complies with all applicable state regulations regarding interest rates on late payments.
For a prospective Body Brain Center franchisee, this is an important consideration for managing finances and ensuring timely payments to avoid incurring interest charges. Franchisees should be aware of their state's laws regarding maximum interest rates to understand the potential financial implications of late payments. Franchisees should prioritize timely payments to avoid these charges and maintain a positive financial standing with Body Brain Center.