Besides interest, what other fee does Cream charge for late payments or insufficient funds?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
All amounts which you owe us for any reason will bear interest accruing as of their due dates at the lesser of 1.5% per month or the highest commercial contract interest rate allowed by law. We will charge you the lesser of our then-current service fee, or the highest amount permitted by applicable law, per occurrence, for checks returned to us due to insufficient funds or in the event there are insufficient funds in the business account you designate to cover our withdrawals.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, in addition to interest on late payments, Cream charges a service fee for checks returned due to insufficient funds. This fee will be the lesser of Cream's then-current service fee or the highest amount permitted by applicable law.
For a prospective Cream franchisee, this means that if a payment is late, interest will accrue on the outstanding amount. Furthermore, if a check bounces or there are insufficient funds to cover a withdrawal, Cream will impose a service fee. The exact amount of this service fee is not specified but is capped at the highest amount legally permissible.
It is important for franchisees to maintain sufficient funds in their designated business accounts to avoid these charges. Franchisees should inquire about the current service fee charged by Cream for insufficient funds to fully understand the potential costs associated with late payments or rejected checks.