When does the Interest on Late Payments apply for a Buona franchise?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Interest on Late Payments | Highest rate of interest permitted by law not to exceed 1.5% per month | As incurred | This interest rate applies to any money you owe us or our affiliate that is more than 7 days overdue and will accrue until the amounts are paid in full. Interest is in addition to service and NSF charges. |
Source: Item 6 — OTHER FEES (FDD pages 16–23)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the Interest on Late Payments fee applies to any money a franchisee owes to Buona or its affiliates that is more than 7 days overdue. The interest accrues until the outstanding amounts are paid in full.
The interest rate charged will be the highest rate permitted by law, but it will not exceed 1.5% per month. This charge is in addition to any service charges or Non-Sufficient Funds (NSF) fees that may also be incurred.
For a prospective Buona franchisee, this means it's crucial to ensure all payments to Buona are made on time to avoid incurring interest charges. Keeping track of due dates and ensuring sufficient funds are available for electronic transfers can help prevent these additional costs.