From what date is the late payment charge calculated for overdue payments to Buona?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
If any monetary obligations owed by Franchisee to Franchisor
or to its Affiliates are more than seven (7) days overdue, Franchisee shall, in addition to any other obligations, pay to Franchisor a sum equal to one and one-half percent (1.5%) of the overdue balance per month, or the highest rate permitted by law, whichever is less, from the date said payment is due ("Late Payment Charge").
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, if a franchisee's monetary obligations to Buona or its affiliates are more than seven days overdue, a late payment charge will be applied. This late payment charge is calculated from the original date the payment was due.
The late payment charge consists of 1.5% of the overdue balance per month, or the highest rate permitted by law, whichever is less. This means that Buona franchisees need to ensure timely payments to avoid incurring these additional charges, which can accumulate if balances remain outstanding.
Franchisees should note that the late payment charge is in addition to any other obligations they may have to Buona. This could include covering legal or collection costs associated with pursuing the overdue debt. Therefore, maintaining good financial standing and adhering to the payment terms outlined in the franchise agreement is crucial for franchisees to avoid these penalties and maintain a positive relationship with Buona.