What is the due date for the late fee charged by Chocolate Bash?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
| 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) |
Source: Item 6 — OTHER FEES (FDD pages 9–13)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, a late fee may be charged if a franchisee fails to make a required payment when it is due. The due date for this late fee, along with interest on the unpaid amount, is 'On demand'. The interest is calculated at a rate of 18% per year, but if that exceeds the maximum allowed by law, the interest rate will be the highest rate legally permitted.
In practical terms, this means that if a Chocolate Bash franchisee misses a payment, they will be charged a late fee of $100 plus interest. Chocolate Bash can demand immediate payment of this fee. This is a fairly standard practice in franchising, as it incentivizes franchisees to make timely payments.
Prospective franchisees should be aware of this policy and ensure they have sufficient funds to cover all required payments to Chocolate Bash. Failing to do so could result in additional fees and interest charges. It is also important to understand what constitutes a 'required payment' and when those payments are due, as outlined elsewhere in the Franchise Agreement.