What is the maximum Interest on Late Payments that Buona can charge per month?
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 maximum interest rate Buona can charge on late payments is the highest rate of interest permitted by law, but it cannot exceed 1.5% per month. This interest applies to any money owed to Buona or its affiliates that is more than 7 days overdue.
This late payment interest is in addition to any service charges and Non-Sufficient Funds (NSF) fees that Buona may also charge. The interest will accrue until the outstanding amounts are paid in full.
For a prospective Buona franchisee, this means that it is crucial to ensure all payments are made on time to avoid incurring these interest charges. Franchisees should be aware of the due dates for all fees and payments to Buona to prevent late fees and the associated interest charges, which can add up quickly if payments are consistently late.