What interest rate does Cool Binz impose on late payments?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
ithin 48 hours of being received.
E. LATE REPORT FEE, LATE PAYMENT SERVICE FEE AND INTEREST.
If the Royalty or any other fee that is due is not available in your account for debiting when due, a late payment fee will be imposed of $50, whichever sum is greater, for each day past due ("Late Payment Fee"). If you do not report your Gross Sales as required and/or you fail to submit your Royalty reports when due, a fee will be imposed of $50 per week for each week past due ("Late Report Fee"). Additionally, interest will be imposed at the rate of 18% per annum or the
maximum rate permitted by applicable law, whichever is greater, from the date these amounts were originally due until the date paid ("Interest Fee"). If we debit your account for monies owed and there are insufficient funds available, we will also charge our current non-sufficient fund fee ("NSF Fee"). We can automatically debit your account for the Late Payment Fee, NSF Fee, Late Report Fee, Interest Fees and all other fees owed to us.
You acknowledge that this paragraph does not constitute our agreement to accept any payments after they are due or our commitment to extend credit to, or otherwise finance the operation of the COOL BINZ Business. Notwithstanding the provisions of this Section, your failure to pay all amounts when due co
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, if a franchisee fails to make timely payments, interest will be charged at a rate of 18% per annum or the maximum rate permitted by applicable law, whichever is greater. This interest accrues from the original due date until the payment is made.
In addition to the interest, Cool Binz also imposes a late payment fee of $50 for each day the payment is past due. Furthermore, if the franchisee's account lacks sufficient funds when Cool Binz attempts to debit it for owed amounts, a non-sufficient fund fee (NSF Fee) will be charged. Cool Binz has the right to automatically debit the franchisee's account for these late payment fees, NSF fees, late report fees, interest fees, and all other outstanding fees.
It is important to note that Cool Binz's acceptance of late payments does not imply an agreement to continue accepting late payments or an extension of credit. Failure to pay amounts when due can result in termination of the franchise agreement. This policy is fairly standard in franchising, as franchisors rely on timely payments to maintain their own financial stability and support services for all franchisees.