To whom does the Buona franchisee pay the late payment charge?
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 is late on any monetary obligations to Buona or its affiliates by more than seven days, the franchisee must pay Buona a late payment charge. This charge is 1.5% of the overdue balance per month, or the highest rate permitted by law, whichever is less.
This late payment charge applies to any monetary obligations the franchisee owes to Buona or its affiliates. This could include franchise fees, royalty fees, marketing fund contributions, or other payments outlined in the franchise agreement. The franchisee is responsible for ensuring timely payments to avoid incurring this additional expense.
Buona requires franchisees to make all payments via automated clearing house (ACH), or other means as outlined in the franchise agreement or manual. Buona or its affiliates have the right to withdraw owed amounts from the franchisee's designated bank account. If an ACH payment is not honored by the franchisee's bank, the franchisee is responsible for the original payment, any service charges from Buona and the bank, and Buona's then-current non-sufficient funds fee. Maintaining a valid ACH account is a material requirement of the franchise agreement.