What costs and expenses can Chocolate Fish Coffee Franchising charge a franchisee for curing a default?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee shall reimburse Chocolate Fish Franchising for its costs and expenses (including the allocation of any internal costs) for such action, plus 10% as an administrative fee.
Source: Item 23 — RECEIPTS (FDD pages 41–119)
What This Means (2024 FDD)
According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, if a franchisee is in default, they will be responsible for reimbursing Chocolate Fish Coffee for all costs and expenses incurred to rectify the default. This includes any internal costs Chocolate Fish Coffee allocates to the curing action.
In addition to covering the direct costs and expenses, Chocolate Fish Coffee also charges an administrative fee of 10% on top of the total costs. This administrative fee compensates Chocolate Fish Coffee for the time and resources spent managing and overseeing the default resolution process.
This policy means that franchisees need to be aware that failing to meet their obligations under the franchise agreement can result in significant financial penalties beyond just the original issue that caused the default. Franchisees should maintain open communication with Chocolate Fish Coffee to address any potential issues promptly and avoid incurring these additional costs.