What is the timeframe a Chocolate Fish Coffee franchisee has to cure non-compliance before a fee is charged?
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 the 2024 Chocolate Fish Coffee FDD, a franchisee has 30 days to cure non-compliance with the System Standards or the Franchise Agreement to avoid a non-compliance fee. If the franchisee fails to cure the non-compliance within this 30-day period after notice, Chocolate Fish Coffee may charge a non-compliance fee of $500.
After the initial $500 fee, Chocolate Fish Coffee may charge an additional $250 per week until the franchisee ceases the non-compliance. This fee is designed to cover Chocolate Fish Coffee's internal costs related to addressing the non-compliance and is not considered a penalty or a comprehensive estimate of all potential damages from the breach.
It is important to note that this non-compliance fee is in addition to any other rights and remedies Chocolate Fish Coffee may have, including default and termination of the agreement. This means that failure to comply could lead to both financial penalties and potential loss of the franchise.