What is the Non-compliance fee for a Chocolate Bash franchise?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Non-compliance fee | $500 | On demand | We may charge you $500 if your business is not in compliance with our system specifications or the franchise agreement and you fail to correct the non-compliance after 30 days' notice. Thereafter, we may charge you $250 per week until you correct such non-compliance. |
Source: Item 6 — OTHER FEES (FDD pages 9–13)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, a franchisee may be charged a non-compliance fee of $500 if their business fails to adhere to the system specifications or the franchise agreement. This fee is only applied if the franchisee does not correct the issue within 30 days of receiving notice from Chocolate Bash.
After the initial $500 fee, Chocolate Bash may charge an additional $250 per week until the franchisee rectifies the non-compliance. This ongoing charge underscores the importance of adhering to Chocolate Bash's standards and contractual obligations.
This fee structure is designed to incentivize franchisees to promptly address any deviations from Chocolate Bash's established system. Franchisees should ensure they fully understand and comply with all system specifications and the franchise agreement to avoid incurring these fees.