What is the current range for system non-compliance fines and charges for a Crave Cookies franchise?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty | 6% of your gross sales | Twice monthly, on the 1st and the 16th | See Note 1 and Note 2. |
| Marketing Fund Contribution | 2% of your gross sales maximum allowed by law, then the maximum allowed by law) | Twice monthly, on the 1st and the 16th | See Item 11 for a detailed discussion about these funds. Amounts due will be withdrawn by electronic wire transfer from your designated bank account. because of insufficient funds in your account. |
| Costs of collection | Our actual costs | As incurred | Payable if we incur costs (including reasonable attorney fees) in attempting to collect amounts you owe to us. |
| Special support fee | Our then-current fee (currently, $600 per day), plus our expenses. | On demand | If we provide in-person support to you in response to your request, we may charge this fee plus any out-of-pocket expenses (such as travel, lodging, and meals for employees providing onsite support). |
| Customer complaint resolution | Our expenses | We may take any action we deem appropriate to resolve a customer complaint about your business. If we respond to a customer complaint, we may require you to reimburse us for our expenses. | |
| Records audit | Our actual cost | On demand | Payable only if (1) we audit you because you have failed to submit required reports or other non-compliance, or (2) the audit concludes that you under-reported gross sales by more than 3% for any 4-week period. |
| Special inspection fee | Currently $600, plus our out-of-pocket costs | On demand | Payable only if we conduct an inspection of your business because of a governmental report, customer complaint or other customer feedback, or your default or non-compliance with any system specification. |
| System non-compliance fines and charges | Amount to be specified in the Crave Operations Manual. Currently ranges between $50 and $2,000. | As incurred | To be paid in accordance with our electronic funds transfer or automatic withdraw program. Payable upon demand if you fail to correct deficiencies or non-compliance with our system. |
| Non-compliance, violation and fees | Amounts range from $0 if infractions cured to maximum fines of $5000. | When notified | See Exhibit L for specific violations and cures. Exhibit L will also be included in the Franchise Agreement as Attachment 4. |
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2025 FDD)
According to Crave Cookies's 2025 Franchise Disclosure Document, the fines and charges for system non-compliance currently range from $50 to $2,000. These fines are incurred when a franchisee fails to correct deficiencies or does not comply with the Crave Cookies system standards. These charges are to be paid according to the electronic funds transfer or automatic withdrawal program that Crave Cookies uses.
Prospective franchisees should note that these fines are in addition to other potential costs associated with non-compliance, such as the 'Special inspection fee' which is currently $600 plus out-of-pocket costs, payable if an inspection is conducted due to non-compliance. Additionally, Crave Cookies may take action to resolve customer complaints about a franchisee's business and require reimbursement for their expenses.
It is important for potential Crave Cookies franchisees to carefully review the Crave Operations Manual, as it specifies the amounts for these non-compliance fines and charges. Understanding the specific violations and their corresponding cures, as detailed in Exhibit L (Attachment 4 of the Franchise Agreement), is crucial for maintaining compliance and avoiding these fees. Franchisees should also be aware of the 'Non-compliance, violation and fees' which range from $0 if infractions are cured to a maximum fine of $5,000.