What fee does Burros Fries charge if a payment or report is overdue?
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 any payment or report is not received by the company on or before the specified date, it is considered overdue. In such cases, Burros Fries franchisees must pay a $25 fee in addition to the overdue amount.
Furthermore, the franchisee will also be charged interest on the overdue amount. This interest accrues from the date the payment was originally due until it is paid in full. The interest rate is set at 1.5% per month, or the maximum rate allowed by the laws of the state where the franchisee's Burros Fries business is located, referred to as the "Default Rate."
This policy ensures that Burros Fries franchisees have a strong incentive to make timely payments and submit reports, as late payments can result in additional fees and interest charges. Franchisees should be aware of these financial implications and ensure they adhere to the payment schedule outlined in the franchise agreement to avoid incurring these extra costs.