What interest rate will Brueggers Bagels charge on overdue payments, and how is it calculated?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
over all royalty fees, Brand Marketing Fund contributions and other fees payable to us or our affiliates. If funds in the Account are insufficient to cover the amounts payable at the time we make our weekly electronic funds transfer, the amount of the shortfall will be deemed overdue.
- 5.5. Interest and Late Fees. If any sums required to be paid by you to us under this Agreement are not received in full by us when due, we will assess a late fee of one hundred dollars ($100) for each week that any payment is delinquent. In addition, if any payment to us is overdue, you must pay us, in addition to the overdue amount, daily interest on the overdue amount from the date it became overdue until paid, at the rate of one and one-half percent (1.5%) per month or the maximum rate permitted by law, whichever is less. Interest shall be calculated on a daily basis. Inter
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels' 2025 Franchise Disclosure Document, if a franchisee fails to make payments in full when due, Brueggers Bagels will charge interest on the overdue amount. The interest rate is 1.5% per month, or the maximum rate permitted by law, whichever is less. This interest accrues daily from the date the payment became overdue until it is paid in full.
In addition to interest, Brueggers Bagels also assesses a late fee of $100 for each week that any payment is delinquent. These interest charges are non-refundable, meaning that once assessed, they will not be credited back to the franchisee under any circumstances.
It is important to note that failure to maintain sufficient funds in the designated account for payments or failure to pay all amounts when due constitutes grounds for termination of the Franchise Agreement. This highlights the importance of managing finances carefully and ensuring timely payments to Brueggers Bagels to avoid penalties and potential termination of the franchise agreement.