When is the administrative fee due to Chocolate Bash if they cure my non-compliance?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Our out-of-pocket | When billed | We may cure your non-compliance on | |
| costs and internal | your behalf (for example, if you do not | ||
| cost allocation, plus | have required insurance, we may purchase | ||
| 10% | insurance for you), and you will owe our | ||
| costs plus a 10% administrative fee. |
Source: Item 6 — OTHER FEES (FDD pages 9–13)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, if Chocolate Bash cures a franchisee's non-compliance on their behalf, the franchisee will owe Chocolate Bash their out-of-pocket costs and internal cost allocation, plus a 10% administrative fee. This fee is due to Chocolate Bash when billed.
This means that if a Chocolate Bash franchisee fails to maintain required insurance, for example, Chocolate Bash may purchase the insurance coverage themselves to ensure compliance. The franchisee would then be responsible for reimbursing Chocolate Bash for the cost of the insurance, plus an additional 10% to cover Chocolate Bash's administrative costs.
It is important for prospective franchisees to understand that Chocolate Bash has the right to cure non-compliance issues on their behalf and that they will be responsible for covering these costs, plus the 10% administrative fee. This could potentially create unexpected expenses for the franchisee if they fail to meet certain requirements outlined in the franchise agreement. Franchisees should ensure they understand all compliance requirements and maintain open communication with Chocolate Bash to avoid these situations.