Under what conditions does Devon Creek charge a late payment 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. |
Source: Item 6 — OTHER FEES (FDD pages 8–16)
What This Means (2024 FDD)
According to Devon Creek's 2024 Franchise Disclosure Document, a late payment fee of $50 per day is charged if a franchisee fails to pay the Continuing Royalty Fee or Brand Fund Fee when due. This fee also applies if the franchisee fails to submit their Gross Revenue report on time. In addition to this daily late fee, interest charges may also be applied to overdue amounts.
Furthermore, Devon Creek may charge a Non-sufficient Funds Fee of $250 if a franchisee's check is returned or an electronic funds transfer is denied due to insufficient funds. This fee is charged for each occurrence of a returned check or denied transfer.
These fees highlight the importance of timely payments and accurate reporting of Gross Revenue for Devon Creek franchisees. Failing to meet these obligations can result in significant additional costs, including daily late fees and interest charges, as well as fees for non-sufficient funds. Prospective franchisees should ensure they have sufficient financial resources and systems in place to manage payments and reporting effectively to avoid these penalties.