What is the late fee charged to a Chocolate Bash franchisee for late payments?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
hisee acknowledges that CB Franchising has the right to remotely access Franchisee's point-of-sale system to calculate Gross Sales.
- (c) Late Fees and Interest. If Franchisee does not make a payment on time, Franchisee shall pay a $100 "late fee" plus interest on the unpaid amount at 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).
- (d) Insufficient Funds. CB Franchising may charge $30 f
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to the 2024 Chocolate Bash Franchise Disclosure Document, if a franchisee fails to make payments on time, they will incur a $100 late fee. In addition to the late fee, Chocolate Bash will also charge interest on the unpaid amount. This interest is calculated at a rate of 18% per year, unless this rate exceeds the maximum interest rate allowed by law, in which case the highest legally permissible rate will be applied.
This policy encourages franchisees to ensure timely payments to avoid these additional costs. The fixed late fee provides a clear penalty for late payments, while the accruing interest on the outstanding balance further incentivizes prompt resolution of overdue amounts.
Furthermore, Chocolate Bash may also charge a $30 fee for any payment that is returned due to insufficient funds, although this fee is also capped at the maximum amount allowed by law. These financial penalties are designed to cover the administrative and financial costs incurred by Chocolate Bash due to late or failed payments.