What consequences might a Crave Cookies franchisee face for a moderate 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, a franchisee may face specific penalties for a second or third offense that is classified as a moderate infraction. For a second moderate infraction, Crave Cookies may impose a fine or suspend certain privileges. Additionally, the franchisee may be required to undergo mandatory training, which could be online, virtual, or in-person.
For a third moderate infraction, Crave Cookies may levy a fine of $1,000. In addition to the fine, the franchisee will be subject to a follow-up audit within 30 days. The franchisee must also develop and implement a detailed improvement plan to address the issues that led to the infraction.
Furthermore, if the moderate infraction involves maintaining a rating lower than 4.5 stars, the franchisee will be required to hire a reputation management and improvement company. These measures are designed to ensure that franchisees adhere to brand standards and address operational deficiencies promptly. The consequences escalate with repeated offenses to encourage compliance and protect the Crave Cookies brand's reputation.
Crave Cookies will provide a formal written notice to the franchisee via email detailing 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 franchisee will have between 24 hours and 7 days to correct a moderate infraction.