What is the weekly penalty fee for continued non-compliance 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, franchisees may face a non-compliance fee. Initially, Chocolate Bash may charge a $500 non-compliance fee if a franchisee's business fails to adhere to system specifications or the franchise agreement, and the franchisee does not correct the issue after receiving 30 days' notice.
Following the initial fee, Chocolate Bash may then charge $250 per week until the franchisee rectifies the non-compliance. This weekly fee continues to accrue until the franchisee resolves the issues that led to the initial non-compliance charge.
This fee structure is designed to encourage franchisees to promptly address any operational or contractual shortcomings. It is important for prospective Chocolate Bash franchisees to understand these potential costs and ensure they can maintain compliance with all franchise requirements to avoid incurring these fees.