When is the non-compliance fee due to Bang Cookies?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
| Non-compliance | Actual fees, costs, and expenses | On demand | Fees, costs and expenses incurred by us as a result of your breach or noncompliance with the terms of your Franchise Agreement. |
|---|---|---|---|
| Reporting Non-Compliance | $150 per occurrence | 14 days of invoice | Payable for failure to timely submit Royalty and Activity Reports, and other reports and financial statements as required under Franchise Agreement. |
| Operations Non-Compliance | $450 to $1,000 per occurrence | 14 days of invoice | Payable for failure to comply with operational standards as required and specified under Franchise Agreement, plus inspection and re-inspection costs incurred by us. |
| Payment Non-Compliance | $150 per occurrence | 14 days of invoice | Payable for failure to timely pay, when due, a fee or payment due to us under the Franchise Agreement, plus interest, costs and legal fees. |
| Interest | 18% per annum from due date | On demand | Payable on all overdue amounts, fees, charges, and payments due to us under the Franchise Agreement. Interest rate cannot exceed legal rate allowed by law and may be adjusted to reflect same. |
Source: Item 6 — OTHER FEES (FDD pages 13–17)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, the general non-compliance fee is due 'on demand.' This fee covers actual costs and expenses Bang Cookies incurs due to a franchisee's breach or noncompliance with the terms of the Franchise Agreement.
However, the FDD also outlines several specific types of non-compliance fees with varying payment terms. For example, non-compliance fees related to reporting, operations, and payments are due within 14 days of the invoice. The reporting non-compliance fee is $150 per occurrence, the operations non-compliance fee ranges from $450 to $1,000 per occurrence, and the payment non-compliance fee is $150 per occurrence.
Prospective Bang Cookies franchisees should carefully review the Franchise Agreement to understand what constitutes non-compliance and the potential costs associated with it. Understanding the specific terms and conditions for each type of non-compliance fee is crucial for managing their business and avoiding unexpected expenses. Franchisees should also note that interest at a rate of 18% per annum may be charged on all overdue amounts.