When does the late payment charge apply to overdue monetary obligations 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, a late payment charge will be applied to any monetary obligations owed to Buona or its affiliates that are more than seven days overdue.
The late payment charge is a sum equal to 1.5% of the overdue balance per month, or the highest rate permitted by law, whichever is less. This charge is applied from the original date the payment was due. This is in addition to any other obligations the franchisee may have.
This policy encourages timely payments from franchisees. The relatively short grace period of seven days before a late fee is applied means franchisees must prioritize paying Buona promptly to avoid incurring additional costs. The 1.5% monthly charge can add up quickly, making it essential for franchisees to manage their finances carefully and ensure all payments are made on time.