What is the late fee and interest rate charged by Brueggers Bagels on overdue payments?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
n the Account at all times to cover 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 on time, Brueggers Bagels will impose financial penalties. Specifically, Brueggers Bagels will assess a late fee of $100 for each week that any payment is overdue.
In addition to the late fee, Brueggers Bagels will also charge interest on the overdue amount. This interest accrues daily from the date the payment became overdue until it is fully paid. The interest rate is set at one and one-half percent (1.5%) per month, which is equivalent to an annual rate of 18%, or the maximum rate permitted by law, whichever is less. The interest is calculated on a daily basis and is considered non-refundable.
It's important to note that these interest charges are in addition to any other legal remedies Brueggers Bagels may pursue for the overdue payment. Furthermore, the FDD states that failing to maintain sufficient funds in the designated account to cover payments, or failing to pay all amounts when due, can be grounds for termination of the Franchise Agreement.