What interest rate does Bombs Away charge on late payments?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
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| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| $100 plus interest on | On demand | We may charge a late fee if you fail to | |
| the unpaid amount at | make a required payment when due. | ||
| a rate equal to 18% | |||
| per year (or, if such | |||
| payment exceeds the | |||
| maximum allowed | |||
| by law, then interest | |||
| at the highest rate | |||
| allowed by law) | |||
| $30 (or, if such | |||
| amount exceeds the | |||
| maximum allowed | |||
| by law, then the | |||
| maximum allowed | |||
| by law) | |||
| Our actual costs | Paya |
Source: Item 6 — OTHER FEES (FDD pages 9–13)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, if a franchisee fails to make a required payment when it is due, Bombs Away may charge a late fee. This fee includes interest on the unpaid amount at a rate of 18% per year.
However, the FDD also states a condition that if this interest rate exceeds the maximum rate allowed by law, then the interest charged will be at the highest rate legally permitted. This protects the franchisee from excessively high interest rates that may violate local or state laws.
In practical terms, a prospective Bombs Away franchisee should be aware of this late fee policy and ensure timely payments to avoid incurring interest charges. It would also be prudent to understand the maximum interest rates allowed by law in their specific jurisdiction to verify compliance.