What are the consequences for a Crave Cookies franchisee's third infraction?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
ill 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 22 — CONTRACTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, the consequences for a third offense depend on the severity of the infraction. For a mild infraction, the franchisee will be fined $100 and must submit a comprehensive improvement plan. A moderate infraction results in a $1,000 fine, a follow-up audit within 30 days, and a detailed improvement plan. Additionally, if the franchisee is maintaining a 4.5-star rating, they must hire a reputation management and improvement company. A severe infraction can lead to a $5,000 fine and consideration for termination of the franchise agreement.
These escalating penalties are part of Crave Cookies' system for ensuring compliance with the franchise agreement and maintaining brand standards. The franchisor documents every step of the process, including warnings, communications, and the franchisee's responses.
For a prospective Crave Cookies franchisee, this means that consistent failure to adhere to the franchise agreement can result in significant financial penalties and, in the most severe cases, termination of the franchise agreement. It is important to understand the specific standards and operational procedures outlined in the franchise agreement and operations manual to avoid these penalties. Franchisees should also be aware of the importance of maintaining a good reputation, as a moderate infraction requires hiring a reputation management company if a 4.5-star rating is maintained.