What are the consequences for a Crave Cookies franchisee after the second infraction?

According to Crave Cookies's 2025 Franchise Disclosure Document, the penalties for a second offense depend on the severity of the infraction. For a mild infraction, the franchisee will receive an official warning and be required to attend a mandatory review meeting. If the infraction is moderate, Crave Cookies may impose a fine or suspend certain privileges, and the franchisee may be required to complete mandatory training, which could be online, virtual, or in-person. A severe infraction results in an immediate fine and a mandatory meeting with corporate representatives within 24 hours.

These escalating penalties are part of Crave Cookies's system for ensuring compliance with the franchise agreement and brand standards. The specific timeframe allowed for correcting an infraction varies based on its severity, with mild infractions typically allowing 7-14 days, moderate infractions 24 hours to 7 days, and severe infractions requiring immediate to 24-hour correction. This structured approach allows Crave Cookies to address issues promptly and consistently across all franchise locations.

Prospective franchisees should be aware that repeated infractions can lead to significant financial penalties and operational restrictions. The mandatory meetings and training sessions also represent a time commitment for the franchisee. Understanding the specific criteria that define mild, moderate, and severe infractions is crucial for maintaining compliance and avoiding these penalties. Franchisees should also clarify what 'suspension of certain privileges' entails to fully understand the potential impact on their business operations.