What is the maximum insufficient funds fee that Cream can charge per occurrence?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks 1, 2 |
|---|---|---|---|
| Interest on Late Payment | Lesser of 1.5% per month or the highest commercial contract rate allowed by law | As incurred | All amounts which you owe us for any reason will bear interest accruing as of their due dates until payment is received in full. |
| Insufficient Funds Fee | Lesser of $100 or the highest amount permitted by applicable law, per occurrence | As incurred | We will charge you the lesser of our then-current 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 6 — OTHER FEES (FDD pages 13–17)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, the insufficient funds fee is the lesser of $100 or the highest amount permitted by applicable law, per occurrence. This fee is incurred if a check is returned due to insufficient funds or if there are insufficient funds in the franchisee's designated business account to cover Cream's withdrawals.
This means that if a franchisee's payment to Cream is rejected due to insufficient funds, Cream can charge a fee. The exact amount will depend on the applicable law, but it will not exceed $100. It is important for franchisees to ensure they have sufficient funds in their account to avoid this fee.
Many franchisors charge fees for late or rejected payments to cover administrative costs and to encourage timely payments from franchisees. Cream's policy is in line with this practice. Franchisees should be aware of all payment deadlines and ensure their accounts are adequately funded to avoid incurring these additional charges.