Besides the overdue amount, what else does Burros Fries charge on overdue payments?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
ii) gratuities paid by guests to Franchisee's employees; and (iii) the amount of refunds Franchisee in good faith gives and refunds of previous payments Franchisee made.
Any payment or report not actually received by us on or before the specified date shall be deemed overdue. If any payment is overdue, in addition to the right to exercise all rights and remedies available to us under this Agreement, Franchisee shall pay us a fee of twenty-five dollars ($25), in addition to the overdue amount, interest on such amount from the date it was due until paid at the rate of 1.5% percent per month or the maximum r
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, if a franchisee's payment or report is not received by the specified date, it is considered overdue. In addition to the overdue amount itself, Burros Fries will charge a $25 fee.
Furthermore, Burros Fries charges interest on the overdue amount from the date it was due until it is paid in full. The interest rate is 1.5% per month, or the maximum rate allowed by the laws of the state where the franchisee's business is located, whichever is lower. This rate is referred to as the "Default Rate."
This means that a Burros Fries franchisee needs to be aware of the due dates for all payments and reports to avoid these additional charges. The $25 fee and the accruing interest can add up quickly, especially if the overdue amount is substantial. Franchisees should ensure they have systems in place to track and make timely payments to Burros Fries to maintain good standing and avoid these financial penalties.