Besides costs and expenses, what additional fee does Crave Cookies charge for curing a default?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee breaches or defaults under any provision of this Agreement, Crave Cookies Franchising may (but has no obligation to) take any action to cure the default on behalf of Franchisee, without any liability to Franchisee.
Franchisee shall reimburse Crave Cookies Franchising for its costs and expenses (including the allocation of any internal costs) for such action, plus 10% as an administrative fee.
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, if a franchisee defaults on any provision of the agreement, Crave Cookies has the option to take action to correct the default on the franchisee's behalf without incurring any liability. If Crave Cookies chooses to take such action, the franchisee is responsible for reimbursing Crave Cookies for all associated costs and expenses, which include any internal costs incurred by Crave Cookies.
In addition to covering the costs and expenses, Crave Cookies charges an administrative fee of 10% of the total costs incurred while curing the default. This administrative fee is added to the reimbursement amount that the franchisee must pay.
This means that if Crave Cookies steps in to cure a default, the franchisee will not only have to pay for the direct costs and expenses that Crave Cookies incurs but also an additional 10% of that amount as an administrative fee. This could potentially increase the financial burden on a franchisee who is already in default, so it is important to understand the terms of the franchise agreement and avoid default situations.