Under what circumstances will Devon Creek charge a Non-sufficient Funds Fee?
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-sufficient Funds Fee. |
| Reimbursement of Cost | Actual costs and expenses | As incurred. | See footnote 10. |
| and Expenses for Non- | |||
| compliance | |||
| Liquidated Damages | You must pay us the average monthly Royalty Fee and Brand Fund Contribution payable by you for the 12 months prior to your default multiplied by the lesser of (i) 36 months, or (ii) the number of months remaining in the term of your Franchise Agreement. | As incurred. | Payable to us in the event your Franchise Agreement is terminated due to your default. |
| Examination of Books and Records | Actual cost of examination plus related expenses. | As incurred. | We have the right under the Franchise Agreement to examine your books, records and tax returns pertaining to the Franchised Business. If an examination reveals that you have understated any Gross Revenue report by two percent (2%) or more, you must pay to us the cost of the audit and all travel and related expenses, in addition to repaying monies owed and interest o |
Source: Item 6 — OTHER FEES (FDD pages 8–16)
What This Means (2024 FDD)
According to Devon Creek's 2024 Franchise Disclosure Document, a Non-sufficient Funds Fee of $250 will be charged each time a check is returned or an electronic funds transfer from the franchisee's bank account is denied due to insufficient funds. This fee is incurred each time such an event occurs.
This means that if a Devon Creek franchisee attempts to make a payment to the company via check or electronic transfer, and the bank rejects the payment due to a lack of funds in the franchisee's account, Devon Creek will assess a $250 fee. This is in addition to any penalties or fees the franchisee's bank might charge for the non-sufficient funds event.
It is important for prospective Devon Creek franchisees to maintain sufficient funds in their accounts to cover all payments to Devon Creek to avoid incurring these Non-sufficient Funds Fees. Franchisees should also be aware of the due dates for all fees and payments to Devon Creek to ensure timely payments and avoid additional charges such as late fees or interest charges.