What is the interest rate charged on late payments to 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) | |||
| $30 (or, if such | |||
| amount exceeds the | |||
| maximum allowed | |||
| by law, then the | |||
| maximum 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, if a franchisee fails to make a required payment when due, Chocolate Bash may charge a late fee. This fee includes interest on the unpaid amount at a rate of 18% per year.
However, the FDD also specifies a condition: if this 18% interest rate exceeds the maximum rate allowed by law, then the interest charged will be at the highest rate legally permitted. This means the actual interest rate could be lower than 18%, depending on applicable laws.
In addition to the interest, Chocolate Bash may also charge a flat fee of $30 for late payments, subject to similar legal limitations. This means that the $30 fee will be reduced to the maximum amount allowed by law if the maximum allowed by law is less than $30.