What are some examples of actions that could trigger a Non-Compliance Fee for a Beverly Anns Cookie franchisee?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee(1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Mystery Shopper Fee | $1,000 per occurrence | On demand | We may require you to conduct a self shop by sending us photos of your GRM/GRT or any Additional Equipment. If the results of the self shop are unsatisfactory or you do not participate, we may send a mystery shopper or similar third party to conduct a mystery shop. If the results of the third-party mystery shopper are unsatisfactory, we will conduct a mystery shop of your Beverly Ann's Cookie Franchise and you must pay us a fee of $1,000 to cover our travel and expenses and you will be subject to non compliance fees. |
| Branded Audit Fee | $3,000 | On demand | You will be required to pay this fee if an |
| audit reveals your purchases of branded | |||
| cups and/or products equals less than | |||
| 30% of your gross sales unless you can | |||
| provide written substantiation of your | |||
| proper usage of branded cups in the | |||
| operation | |||
| of | |||
| your | |||
| Beverly | |||
| Ann's | |||
| Business. This fee is in addition to all of | |||
| other rights and remedies that we have | |||
| in the Franchise Agreement. |
Source: Item 6 — OTHER FEES (FDD pages 15–24)
What This Means (2025 FDD)
According to Beverly Anns Cookie's 2025 Franchise Disclosure Document, several actions can trigger a non-compliance fee. One instance is related to the Mystery Shopper Fee. If Beverly Anns Cookie requires a franchisee to conduct a self-shop by sending photos of their GRM/GRT or any Additional Equipment, and the results are unsatisfactory or the franchisee does not participate, Beverly Anns Cookie may send a third-party mystery shopper. If the third-party mystery shopper's results are also unsatisfactory, the franchisee will be subject to non-compliance fees and must pay $1,000 to cover Beverly Anns Cookie's travel and expenses for conducting their own mystery shop.
Another instance where a franchisee may be charged a fee is if an audit reveals that their purchases of branded cups and/or products equals less than 30% of their gross sales, unless they can provide written substantiation of proper usage of branded cups. In this case, the franchisee will be required to pay a Branded Audit Fee of $3,000. This fee is in addition to all other rights and remedies that Beverly Anns Cookie has in the Franchise Agreement.
These fees highlight the importance of adhering to Beverly Anns Cookie's standards and requirements, including maintaining satisfactory performance based on mystery shopper evaluations and meeting the minimum purchase threshold for branded products. Franchisees should ensure they understand and comply with these requirements to avoid incurring additional fees and potential penalties.