Where can I find the specific violations and cures related to non-compliance fees 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 Amounts due will be withdrawn by electronic wire transfer from your designated bank account.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, details regarding specific violations and their corresponding cures related to non-compliance fees can be found in Exhibit L, which will also be included as Attachment 4 to the Franchise Agreement. The fees for non-compliance, violation, and associated fees can range from $0, if the infractions are corrected, up to a maximum fine of $5,000.
For a prospective Crave Cookies franchisee, this means understanding Exhibit L is crucial. It outlines the specific actions or omissions that could lead to financial penalties and the steps required to rectify those situations. This exhibit provides clarity on what constitutes a violation and what actions a franchisee can take to avoid or resolve non-compliance issues.
It's important to note that the non-compliance fees are "When notified", meaning that these fees are applied once the franchisee has been informed of the violation. Franchisees should familiarize themselves with Exhibit L to understand their obligations and avoid incurring these fees. Paying attention to the violations and cures outlined in Exhibit L can help a Crave Cookies franchisee maintain compliance and avoid potentially significant financial penalties.