What is the fine associated with a third offense severe infraction for a Crave Cookies franchise?
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 23 — RECEIPTS (FDD pages 47–194)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, a third offense for a severe infraction results in a $5,000 fine and consideration for termination of the franchise agreement. This escalation of penalties is part of Crave Cookies' compliance and violation protocols.
Crave Cookies outlines a process where, after an initial written notice, franchisees have an opportunity to correct the infraction. The timeframe for correction varies based on the severity of the infraction, with severe infractions requiring immediate to 24-hour correction. If the issue persists and escalates to a third offense, the financial penalty is significant, and the franchisor may consider terminating the franchise agreement.
It is important to note that severe infractions are defined as critical issues that can significantly harm the brand's reputation, customer trust, and operational integrity. Examples of severe infractions include significant health and safety violations, sharing unit-level sales information outside the franchise organization, non-compliance with legal and regulatory requirements, gross mismanagement of financial reporting, any action severely damaging the brand reputation, and carrying non-approved menu items. Franchisees should be aware of these potential penalties and ensure strict compliance with Crave Cookies' standards to avoid such consequences.