What is the late fee amount for failing to make a required payment to Chocolate Bash?

According to Chocolate Bash's 2024 Franchise Disclosure Document, if a franchisee fails to make a required payment when it is due, Chocolate Bash may charge a late fee. This late fee consists of two components: a flat fee of $30 (or the maximum amount allowed by law, if lower) and interest on the unpaid amount.

The interest rate applied to the unpaid amount is 18% per year. However, if this rate exceeds the maximum interest rate permitted by law, Chocolate Bash will charge the highest interest rate legally allowed. This ensures that the late fee complies with applicable regulations while still compensating Chocolate Bash for the delayed payment.

In practical terms, this means a Chocolate Bash franchisee needs to prioritize timely payments to avoid incurring these additional charges. The combination of a flat fee and a potentially high interest rate could significantly increase the amount owed, impacting the franchisee's profitability. Franchisees should be aware of the due dates for all payments and ensure they have sufficient funds available to avoid late fees and maintain a positive financial standing with Chocolate Bash.