What is the interest rate charged by Brain Balance on overdue payments?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
se of our website. | |
| Name of Fee (Note 1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Annual Convention | Franchisee: $750 per person Staff: $700 per person We have the right to increase this fee up to $1,500 per person, on at least 30 days' notice to you. | At the point of registration, prior to Convention date. | Travel, lodging, and food expenses will be in addition to the registration fee, some of which will be discounted or subsidized by the Franchisor. |
| Interest | 2% per month compounded | Upon demand | Payable |
Source: Item 6 — OTHER FEES (FDD pages 13–19)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, franchisees will be charged interest on overdue payments. The interest rate is 2% per month compounded, and it applies to all payments that are 15 or more days overdue. This interest is payable upon demand by Brain Balance.
This means that if a franchisee fails to make a payment within 15 days of the due date, Brain Balance can charge interest on the outstanding balance. The interest is compounded monthly, meaning that the interest accrued each month is added to the principal, and the next month's interest is calculated on the new, higher balance. This can significantly increase the amount owed over time.
Franchisees should be aware of this policy and ensure that all payments are made on time to avoid incurring interest charges. It is also important to understand the compounding effect of the interest and how it can impact the total amount owed. Franchisees should factor this potential cost into their financial planning and budget accordingly.