What is the initial non-compliance fee that Chocolate Fish Coffee may charge a franchisee?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
te Fish Franchising's training program after opening, Chocolate Fish Franchising may charge its then-current training fee. As of the date of this Agreement, the training fee is $350 per day.
- 4.5 Non-Compliance Fee. Chocolate Fish Franchising may charge Franchisee $500 for any instance of non-compliance with the System Standards or this Agreement (other than Franchisee's non-payment of a fee owed to Chocolate Fish Franchising) which Franchisee fails to cure after 30 days' notice. Thereafter, Chocolate Fish Franchising may charge Franchisee $250 per week until Franchisee ceases such non-compliance. This fee is a reasonable estimate of Chocolate Fish Franchising's internal cost of personnel time attributable to addressing the non-compliance, and it is not a penalty or estimate of all dama
Source: Item 23 — RECEIPTS (FDD pages 41–119)
What This Means (2024 FDD)
According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, the company may charge a non-compliance fee. Specifically, Chocolate Fish Coffee may charge a franchisee $500 for any instance of non-compliance with the System Standards or the Franchise Agreement. This fee applies to instances other than non-payment of fees owed to Chocolate Fish Coffee.
The franchisee has a 30-day notice period to cure the non-compliance. If the franchisee fails to correct the issue within this timeframe, Chocolate Fish Coffee may then charge $250 per week until the franchisee ceases the non-compliance.
The FDD states that these fees are a reasonable estimate of Chocolate Fish Coffee's internal costs related to addressing the non-compliance and are not considered a penalty or an estimate of all potential damages from the franchisee's breach. Furthermore, these non-compliance fees are in addition to all other rights and remedies available to Chocolate Fish Coffee, including default and termination rights under Section 14.2 of the agreement.