When does Brain Balance charge interest on overdue payments?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
| Name of Fee (Note 1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Interest | 2% per month compounded | Upon demand | Payable on all payments that are 15 or more days overdue. |
Source: Item 6 — OTHER FEES (FDD pages 13–19)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, interest is charged on overdue payments. Specifically, Brain Balance assesses a 2% per month compounded interest fee on all payments that are 15 or more days overdue. This interest is payable upon demand.
For a prospective Brain Balance franchisee, this means that if any payment to the franchisor is not made within 15 days of its due date, interest will begin to accrue. The interest rate of 2% per month compounded can add up quickly, so it's crucial to ensure all payments are made on time to avoid these charges.
Franchisees should be aware of this policy and factor it into their financial planning. Setting up payment reminders or automated payments may be a good strategy to prevent late fees and interest charges. It is also important to note that this interest charge is in addition to any other fees or penalties that may be assessed for late payments, as outlined elsewhere in the Franchise Agreement.