When is the Devon Creek late payment fee due?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
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| -J P | Amount | Due Date | Remarks |
|---|---|---|---|
| Late Payment Fee | $50 per day | As incurred | If you fail to pay us the Continuing Royalty Fee, Brand Fund Fee, or if you fail to submit your Gross Revenue report when due, we may charge you $50 per day for each late submission in addition to interest charges explained below. |
| Non-sufficient Funds Fee | $250 | As incurred | If your check is returned or an electronic funds transfer from your bank account is denied for insufficient funds, for each occurrence we may charge you a Non-suf |
Source: Item 6 — OTHER FEES (FDD pages 8–16)
What This Means (2024 FDD)
According to Devon Creek's 2024 Franchise Disclosure Document, the late payment fee of $50 per day is due as incurred. This fee is applied if a franchisee fails to pay the Continuing Royalty Fee or Brand Fund Fee, or if they fail to submit their Gross Revenue report when it is due. In addition to the late fee, Devon Creek may also charge interest on the overdue amount.
For a prospective Devon Creek franchisee, this means that timely payments and submissions of reports are crucial to avoid incurring these additional costs. The $50 per day late fee can quickly add up, especially if the delay persists. Franchisees should ensure they have systems in place to manage payments and reporting deadlines effectively.
Furthermore, the FDD specifies a Non-sufficient Funds Fee of $250, also due as incurred, if a check is returned or an electronic funds transfer is denied due to insufficient funds. This highlights the importance of maintaining adequate funds in the designated bank account to cover payments to Devon Creek. Franchisees should be aware of these potential fees and take steps to avoid them by carefully managing their finances and adhering to the payment schedule outlined in the Franchise Agreement.