What is the weekly late fee charged by Brueggers Bagels, in addition to interest, for overdue payments?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
| (Note 1) | |||
|---|---|---|---|
| System Support Fees and Approved Software Fees (Franchised Bakeries only) for legacy POS system (Note 4) | Currently $300 - $500 per Bakery | Monthly | We have the right to develop ourselves, have developed for us, or designate certain third party computer software programs and web-based programs and applications that you must use in connection with the operation of your Bakery ("Approved Software"), and you may be required to pay initial and ongoing fees in order to install and continue to use the Approved Software. These fees also may be paid directly to third party vendors for our online ordering platform and our gift card program. |
| System Support Fees (Franchised Bakeries only) for subscription based system | $500 - $1,100 per Month | Monthly | For franchised Bakeries that have migrated to our new POS subscription model (see Note 4) that leverages a mobile order platform. These fees support the cost of our service desk, ongoing maintenance of the POS menu database and back office system databases, ongoing maintenance and development of our mobile application, as well as franchise reporting software and vendor management. |
| Interest and Late Fees | $100 per week plus interest on the unpaid amount at the rate of one and one-half percent (1.5%) per month or the maximum rate permitted by state law, whichever is less ("Default Rate") | Upon demand or with payment of overdue amount | We can charge a late fee to compensate us for our administrative costs incurred in enforcing your obligation to pay us. We calculate interest from the date the payment was due until paid in full. Payments will be applied to any late f |
Source: Item 6 — OTHER FEES (FDD pages 13–18)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, if a franchisee fails to make payments on time, Brueggers Bagels charges a late fee of $100 per week. This is in addition to interest accruing on the unpaid amount.
The interest rate is calculated at 1.5% per month, or the maximum rate permitted by state law, whichever is less. Brueggers Bagels refers to this as the "Default Rate". This means that franchisees could face significant financial penalties for late payments, including both a fixed weekly fee and a percentage-based interest charge that compounds monthly.
Brueggers Bagels applies payments first to any outstanding late fees, then to accrued interest, and finally to the principal amount due. This prioritization means that late fees and interest can accumulate quickly, making it more difficult for franchisees to catch up on overdue balances. Franchisees should ensure they have sufficient cash flow management to avoid these charges.