What costs are included when Chocolate Bash attempts to collect amounts owed?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
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| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| $100 plus interest on | On demand | We may charge a late fee if you fail to | |
| the unpaid amount at | make a required payment when due. | ||
| a rate equal to 18% | |||
| per year (or, if such | |||
| payment exceeds the | |||
| maximum allowed | |||
| by law, then interest | |||
| at the highest rate | |||
| allowed by law) | |||
| $30 (or, if such | |||
| amount exceeds the | |||
| maximum allowed | |||
| by law, then the | |||
| maximum allowed | |||
| by law) | |||
| Our actual costs | Payable if we incur costs (including | ||
| reasonable attorney fees) in attempting to | |||
| collect amounts you owe to us. | |||
| If we provide in-person support to you in | |||
| response to your request, we may charge | |||
| this fee plus any out-of-pocket expenses | |||
| (such as travel, lodging, and meals for | |||
| employees providing onsite support). | |||
| We may take any action we deem | |||
| appropriate to resolve a customer | |||
| complaint about your business. |
Source: Item 6 — OTHER FEES (FDD pages 9–13)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, if Chocolate Bash incurs costs while trying to collect overdue payments from a franchisee, the franchisee is responsible for covering those costs. These costs include reasonable attorney fees. Additionally, Chocolate Bash may charge a late fee of $100, along with interest on the unpaid amount. The interest rate is set at 18% per year, but if this rate exceeds the maximum allowed by law, the highest legally permissible rate will be applied.
In the event of any legal proceedings, including arbitration, the party that does not win the case is required to cover the attorney fees, court costs, and other expenses incurred by the prevailing party. This means that if Chocolate Bash wins a legal dispute against a franchisee, the franchisee will have to pay Chocolate Bash's legal costs.
Furthermore, if Chocolate Bash has to pay an amount that a franchisee owes to a third party, the franchisee must reimburse Chocolate Bash for that amount, in addition to a 10% administrative fee. This reimbursement must be made within 15 days of receiving the invoice from Chocolate Bash. These financial responsibilities underscore the importance of franchisees managing their payments and adhering to the franchise agreement to avoid incurring additional costs.