If Chocolate Bash cures my non-compliance, what additional administrative fee will I owe?
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 you are non-compliant and Chocolate Bash decides to cure the non-compliance on your behalf, you will owe their out-of-pocket costs and internal cost allocation, plus an additional 10% administrative fee. For example, if you do not have the required insurance, Chocolate Bash may purchase it for you.
This means that in addition to covering the expenses Chocolate Bash incurs to correct your non-compliance, such as purchasing insurance, you will also be charged an extra 10% of those costs as an administrative fee. This fee covers Chocolate Bash's overhead and effort in managing the process of curing your non-compliance.
It is important to note that the FDD does not specify how Chocolate Bash calculates their internal cost allocation. As a prospective franchisee, you should seek clarification from Chocolate Bash on how these costs are determined to fully understand the potential financial implications.