What are the consequences for a Crave Cookies franchisee who commits a severe infraction?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
up with the franchisee within the specified correction time frame to verify if the issue has been rectified.
- II. Follow-up will include an inspection or review of submitted evidence (e.g., photos, reports).
B. Escalation of Penalties:
- I. If the infraction is not corrected within the specified timeframe, penalties will escalate according to the severity tier.
- a. First Offense: Verbal warning or a formal written warning, documented in the franchisee's file.
b. Second Offense:
- i. Mild Infraction: Official warning and mandatory review meeting.
- ii. Moderate Infraction: Fine or suspension of certain privileges; mandatory training (online, virtual, or in-person) may be required.
- iii. Severe Infraction: Immediate fine and mandatory mee
Source: Item 23 — RECEIPTS (FDD pages 47–194)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, the consequences for a franchisee who commits a severe infraction depend on whether it is a first, second, or third offense. For a first offense, the penalty will be a verbal or formal written warning, which will be documented in the franchisee's file. For a second offense, the franchisee will face an immediate fine and a mandatory meeting with corporate within 24 hours. For a third offense, the franchisee will be fined $5,000, and Crave Cookies will consider terminating the franchise agreement.
Crave Cookies will provide an initial written notice identifying the infraction, referencing the specific section of the franchise agreement or Brand Standards and Operations Manual that has been violated, and indicating the severity level of the infraction. The company will then provide a formal written notice to the franchisee via email, detailing the nature of the infraction and the date and time it was observed.
The franchisee has a chance to correct the infraction. For severe infractions, the timeframe for correction is immediate to 24 hours. Crave Cookies will follow up with the franchisee within the specified correction time frame to verify if the issue has been rectified, including an inspection or review of submitted evidence. Crave Cookies will thoroughly document every step of the process, including warnings, communications, and the franchisee's responses.
Crave Cookies retains the right to terminate the franchise agreement as a last resort, defining specific, egregious violations that warrant immediate termination. In such cases, Crave Cookies will ensure a fair process is followed, including providing written notice and an opportunity for the franchisee to respond, and will offer guidance and support to minimize disruption during the transition period.