Under what conditions is the Non-compliance fee charged to a Chocolate Bash franchisee?
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 non-compliance fee of $500 may be charged to franchisees under specific circumstances. Chocolate Bash may charge this fee if a franchisee's business is not in compliance with the system specifications or the franchise agreement.
However, this fee is not immediately assessed. Chocolate Bash will first provide the franchisee with a 30-day notice to correct the non-compliance. If the franchisee fails to rectify the issue within this 30-day period, the $500 non-compliance fee is charged.
Furthermore, the FDD states that Chocolate Bash may continue to charge the franchisee $250 per week until the non-compliance is corrected. This escalating fee structure is designed to incentivize franchisees to promptly address and resolve any issues of non-compliance to avoid accumulating further charges.