What is the operations non-compliance fee for Bang Cookies franchisees for all other operations violations not involving non-approved services/products or system supplies?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
t Franchisor may elect to provide management services, if any, and the extent of such services, and/or the discontinuation thereof, shall be exclusively determined by Franchisor in Franchisor's Reasonable Business Judgment. The Management Service Fee shall be immediately payable upon invoice by us.
- (4) Franchisee will at all times maintain sufficient working capital to fulfill its obligations under this Agreement.
7.K. REMEDIES FOR NONCOMPLIANCE WITH OPERATIONAL STANDARDS
In addition to all other rights afforded to Franchisor under this Agreement, in connection with any, each, and every violation of any term, provision, and/or operational requirement as set forth in this Article 7 (an "Operations Violation"), within 14 days of Franchisor's invoice, Franchisee shall pay to Franchisor an operations non-compliance fee (the "Operations Non-Compliance Fee") in the amount of: (a) $1,000 for each and every instance / event related to an Operations Violation involving the sale of services and/or products that are not Approved Services and Products; (b) $1,000 for each and every instance / event related to an Operations Violation involving the failure to exclusively use System Supplies, and/or Franchisor designated suppliers; and (c) $450 for all other Operations Violation. Additionally, in each of the foregoing instances, within 14 days of Franchisor's invoice, Franchisee shall pay to Franchisor all costs and expenses incurred by Franchisor in connection with any inspections, audits, and/or re-inspections directed and/or undertaken by Franchisor for the purpose, as det
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, franchisees may incur an operations non-compliance fee for violations of operational standards. Specifically, for operations violations not involving the sale of non-approved services/products or the failure to exclusively use system supplies, Bang Cookies charges a fee of $450 per instance or event. This fee is in addition to any costs and expenses Bang Cookies incurs for inspections, audits, or re-inspections to determine if the violation has been corrected.
This means that if a Bang Cookies franchisee violates any operational requirement outlined in Article 7 of the Franchise Agreement, and the violation does not involve selling unauthorized products or failing to use approved suppliers, they will be assessed a $450 fee for each occurrence. It is important to note that this fee is separate from any costs Bang Cookies incurs to inspect and ensure the franchisee has corrected the violation.
Bang Cookies franchisees should be aware that these fees are in addition to any other remedies Bang Cookies may pursue under the Franchise Agreement. Franchisees must pay the operations non-compliance fee within 14 days of the invoice date. Franchisees should carefully review Article 7 of the Franchise Agreement and the operations manual to understand what constitutes an operations violation and how to avoid incurring these fees.