What is the late fee charged by Bombs Away Franchising for late payments?

According to Bombs Away's 2024 Franchise Disclosure Document, if a franchisee fails to make payments on time, they will incur a $100 late fee. In addition to the late fee, Bombs Away will charge interest on the unpaid amount at a rate of 18% per year. However, if this interest rate exceeds the maximum allowed by law, the interest rate will be the highest rate legally permitted.

This policy means that franchisees must prioritize timely payments to avoid these additional costs. The $100 late fee is a fixed amount, but the accruing interest can become a substantial burden if the outstanding balance remains unpaid for an extended period. Franchisees should be aware of the potential for these charges and factor them into their financial planning.

It is common practice for franchisors to charge late fees and interest on overdue payments to encourage timely payments and to compensate for the administrative costs and potential financial losses associated with collecting late payments. Bombs Away's policy aligns with this practice, but franchisees should carefully review the terms and conditions to fully understand their obligations and the consequences of late payments.