How frequently can Auntie Annes charge non-compliance fees for ongoing violations?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
If you fail to comply with any of the Standards or any provision of this Agreement, in addition to any other remedies we may be entitled to, we reserve the right to charge you one or more non-compliance fees upon written notice to you.
The noncompliance fees shall be specified in the Manuals or otherwise in writing, may be modified from time to time upon written notice to you, may be charged repeatedly (as frequently as daily) if the non-compliance is ongoing, and may vary based on the severity of the defaults, the number of the defaults, and whether the defaults have been repeated.
Source: Item 22 — CONTRACTS (FDD page 106)
What This Means (2024 FDD)
According to Auntie Annes' 2024 Franchise Disclosure Document, if a franchisee fails to comply with the brand's standards or any provision within the Franchise Agreement, Auntie Annes reserves the right to charge non-compliance fees. These fees are in addition to any other remedies the company may pursue.
The frequency of these fees can be as high as daily, provided the non-compliance is ongoing. The fees will be communicated to the franchisee in writing.
The amount of the non-compliance fees may vary. The amount depends on the severity and number of defaults, and whether the defaults have been repeated. This means that franchisees who repeatedly violate the agreement or commit serious violations will likely face higher and more frequent fees.