What is the late payment charge for overdue monetary obligations to Buona?

According to Buona's 2025 Franchise Disclosure Document, if a franchisee fails to meet their monetary obligations to Buona or its affiliates and the payment is more than seven days overdue, Buona will charge a late fee. This late payment charge is equal to one and one-half percent (1.5%) of the overdue balance per month. However, the FDD also states that if the highest rate permitted by law is less than 1.5%, then the legal maximum rate will be charged instead. This late payment charge will be applied from the original date the payment was due.

This means that if a franchisee has a $1,000 payment that is 8 days late, they could be charged an additional $15 for that month, in addition to the original $1,000 owed. This could compound each month that the payment remains outstanding. Franchisees should be aware of this policy and ensure timely payments to avoid incurring these charges.

Late fees are a common practice in franchising to encourage timely payments and to compensate the franchisor for the administrative costs and potential financial losses associated with overdue accounts. Franchisees should factor in these potential costs when budgeting and managing their finances. It is important to note that this late payment charge is in addition to any other obligations the franchisee may have to Buona.