What is the late fee charged by Bombs Away Franchising if a payment is not made on time?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee acknowledges that Bombs Away Franchising has the right to remotely access Franchisee's point-of-sale system to calculate Gross Sales.
- (c) Late Fees and Interest. If Franchisee does not make a payment on time, Franchisee shall pay a $100 "late fee" plus interest on the unpaid amount at 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).
- (d) Insufficient Funds. Bombs Away Franchising may charge $30 for any payment returned for insufficient funds (or, if such amount exceeds the maximum allowed by law, then the fee allowed by law).
- (e) Costs of Collection. Franchisee sh
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, if a franchisee fails to make payments on time, Bombs Away Franchising will charge a $100 late fee.
In addition to the late fee, Bombs Away Franchising will also charge interest on the unpaid amount. The interest rate is 18% per year, but if this rate exceeds the maximum allowed by law, the interest rate will be the highest rate legally permitted.
Bombs Away Franchising also specifies other fees related to payments. There is a $30 fee for any payment returned due to insufficient funds, unless the legally allowed maximum is less. The franchisee is also responsible for repaying any costs Bombs Away Franchising incurs while trying to collect overdue payments, including reasonable attorney fees.