Is the late payment charge for Buona a one-time fee or a recurring monthly 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's monetary obligations to Buona or its affiliates are more than seven days overdue, Buona will charge a late fee. This late payment charge is equal to 1.5% of the overdue balance per month, or the highest rate permitted by law, whichever is less.
This late payment charge is applied from the date the payment was originally due. This indicates that the late payment charge is a recurring monthly charge, as it is calculated and applied each month the payment remains overdue.
Prospective Buona franchisees should be aware of this late payment policy and ensure they have sufficient financial resources and systems in place to make timely payments to Buona. Failure to do so will result in additional fees, which can impact the profitability of the franchise.