What is the weekly non-compliance fee that Chocolate Fish Coffee may charge after the initial non-compliance fee?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
late 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, if a franchisee fails to correct an instance of non-compliance with the System Standards or the Franchise Agreement (excluding non-payment of fees) within 30 days of notice, Chocolate Fish Coffee may impose an initial non-compliance fee of $500.
Following this initial fee, Chocolate Fish Coffee has the right to charge a weekly non-compliance fee. This weekly fee amounts to $250 per week. This charge continues until the franchisee rectifies the non-compliance issue.
The FDD specifies that 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 resulting from the breach. This fee is in addition to any other legal rights or remedies Chocolate Fish Coffee may pursue, including default or termination of the franchise agreement.