What is the minimum late fee that Chocolate Bash charges for failing to make a required payment?

According to Chocolate Bash's 2024 Franchise Disclosure Document, the minimum late fee for failing to make a required payment is $30, or the maximum amount allowed by law if $30 exceeds the legal limit. Additionally, Chocolate Bash may charge interest on the unpaid amount at a rate of 18% per year, unless this rate exceeds the maximum allowed by law, in which case the highest legally permissible rate will apply. This late fee, along with the potential interest charges, is due on demand.

This means that if a Chocolate Bash franchisee is late on a payment, they will incur a minimum charge of $30, but could also be charged 18% annual interest on the outstanding balance. The actual amount a franchisee might pay in late fees could vary depending on the size of the unpaid amount and the length of the delay in payment. It is important to note that these fees are in addition to any other fees outlined in the Franchise Agreement.

Franchisees should be aware of these potential late fee charges and ensure that all payments are made on time to avoid incurring these additional costs. It is also important to understand the circumstances under which these fees may be applied, as well as any legal limitations on the amount of the fees or interest that can be charged. Prospective franchisees should clarify with Chocolate Bash any specific policies or procedures related to late payments and the calculation of interest charges.