What is the interest rate charged on late payments to Buona, and when does it apply?
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. |
| Service Charges and Non-Sufficient Funds Fee | Currently $250 | Upon demand | Payable if an ACH transaction is not honored. |
Source: Item 6 — OTHER FEES (FDD pages 16–23)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, if a franchisee makes a late payment to Buona or its affiliates, Buona charges interest on the overdue amount. The interest rate is the highest rate permitted by law, but will not exceed 1.5% per month.
This interest applies to any money owed to Buona or its affiliates that is more than 7 days overdue. The interest accrues until the outstanding amounts are paid in full.
In addition to the interest charge, Buona also charges service charges and non-sufficient funds (NSF) fees, currently at $250, if an ACH transaction is not honored. Franchisees should be aware of these potential charges and ensure timely payments to avoid incurring these additional costs.