When is the Operations Non-Compliance fee due to Bang Cookies?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
| POS Fee | Currently $165 per month | As incurred | |
|---|---|---|---|
| Self-Serve Kiosk Fee | $279 per month or for 2 or more kiosks, $199 per month per kiosk | As incurred | |
| 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. |
| 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. |
Source: Item 6 — OTHER FEES (FDD pages 13–17)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, the Operations Non-Compliance fee is due 14 days from the date of the invoice. This fee, ranging from $450 to $1,000 per occurrence, is charged if a franchisee fails to comply with the operational standards outlined in the Franchise Agreement. In addition to the fee itself, the franchisee is also responsible for covering any inspection and re-inspection costs incurred by Bang Cookies as a result of the non-compliance.
This means that if a Bang Cookies franchise location fails to meet the brand's operational standards, whether in terms of cleanliness, service protocols, or other requirements, the franchisee will be invoiced for the non-compliance. They then have a relatively short window of just two weeks to remit payment. The specific amount of the fee within the $450 to $1,000 range will likely depend on the severity and nature of the non-compliance, as well as the costs associated with any necessary inspections to verify and rectify the issue.
Prospective franchisees should carefully review the operational standards detailed in the Franchise Agreement to fully understand what is expected of them. Maintaining compliance is crucial not only to avoid these fees but also to uphold the brand's reputation and ensure a consistent customer experience. The Operations Non-Compliance fee serves as a financial incentive for franchisees to adhere to Bang Cookies's established operational procedures and guidelines.
It is also important to note that failure to pay the Operations Non-Compliance fee within the 14-day timeframe could potentially lead to additional penalties, such as interest charges on the overdue amount. Franchisees should prioritize addressing any operational issues promptly and ensuring timely payment of any associated fees to avoid further financial repercussions and maintain a positive relationship with Bang Cookies.