When is the late fee for Chocolate Bash due?
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 late fee consists of $100 plus interest on the unpaid amount.
The interest rate applied to the unpaid amount will be 18% per year. However, if this rate exceeds the maximum interest rate allowed by law, the interest will be charged at the highest rate legally permissible.
The late fee is due 'on demand,' meaning Chocolate Bash can require immediate payment of the fee. This is a fairly standard practice in franchising, as franchisors need to ensure timely payments to maintain their own financial stability and support services for all franchisees.