What is the late fee charged by Bombs Away, and how is it calculated?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
| 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) |
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 late fee consists of $100 plus interest on the unpaid amount. The interest rate is 18% per year, unless this exceeds the maximum rate allowed by law, in which case the highest legally permissible rate will be applied.
This means that if a Bombs Away franchisee is late on a payment, they will incur an immediate charge of $100. On top of this, they will be charged interest on the outstanding balance at a rate of 18% per year, accruing daily until the payment is made. For example, if a franchisee is late on a $1,000 payment, they will owe the initial $100 late fee, plus interest at a rate of 18% per year on the $1,000 until it is paid.
Franchisees should be aware of these late fee terms and ensure that all payments are made on time to avoid incurring these additional costs. It is also important to note that the interest rate may be adjusted to comply with applicable laws, so franchisees should stay informed about any changes to these regulations.