What interest rate does Nothing Bundt Cakes charge on late payments or insufficient funds?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
advertising fees due under this Agreement, as well as any late fee and interest on past-due amounts as provided for herein. We reserve the right to require you to pay any fees due under this Agreement by such other means and at such periods as we may specify from time to time, including making any payment directly to our affiliates.
3.5 Insufficient Funds and Late Payments
If the funds in your bank account are insufficient to cover any amounts due under this Agreement or otherwise due to us or our affiliates on the date such funds are due, or if you make any late payments or underpay amounts due to us or our affiliates, we have the right to immediately debit from your bank account interest on such amount from the date it was due until all past due amounts are paid, at a rate of the lesser of Eighteen Percent (18%) per annum or the maximum rate permitted by law, plus a fee of Fifty Dollars ($50). Late fees shall double every thirty (30) days subject to the maximum legal
Source: Item 23 — RECEIPTS (FDD pages 93–309)
What This Means (2025 FDD)
According to Nothing Bundt Cakes' 2025 Franchise Disclosure Document, if a franchisee's bank account has insufficient funds to cover amounts due, or if they make late payments or underpay, Nothing Bundt Cakes has the right to debit interest from the franchisee's bank account. This interest is calculated from the date the payment was due until all past due amounts are paid. The interest rate applied will be the lesser of 18% per annum or the maximum rate permitted by law.
In addition to interest, Nothing Bundt Cakes also charges a fee of $50 for insufficient funds or late payments. The late fees will double every 30 days, but are subject to the maximum legal amount. Nothing Bundt Cakes will run an EFT (Electronic Funds Transfer) every day until all amounts owed are paid in full. The franchisee is also responsible for paying Nothing Bundt Cakes' then-current insufficient fund charge, as well as any bank service charges incurred by either the franchisee or Nothing Bundt Cakes.
This policy ensures that Nothing Bundt Cakes is compensated for the financial burden and administrative costs associated with late or insufficient payments. Franchisees should be aware of these terms and ensure timely payments to avoid incurring these charges. It is also important to note that Nothing Bundt Cakes retains the right to exercise other remedies available to them under the franchise agreement, in addition to these specific charges.