What is the range of the Operations Non-Compliance fee for a Bang Cookies franchise?
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 ranges from $450 to $1,000 per occurrence. This fee is payable if a franchisee fails to comply with the operational standards outlined in the Franchise Agreement.
The fee is due within 14 days of the invoice date. In addition to the fee itself, the franchisee is also responsible for covering any inspection and re-inspection costs that Bang Cookies incurs as a result of the non-compliance. This means the total cost could exceed $1,000 depending on the specific circumstances and the extent of the inspections required.
This type of fee is relatively common in franchising, as franchisors use it to enforce brand standards and operational consistency across all locations. For a prospective Bang Cookies franchisee, it's crucial to thoroughly understand the operational standards detailed in the Franchise Agreement to avoid incurring these non-compliance fees. Paying close attention to training and adhering to the brand's guidelines will help minimize the risk of these charges.