factual

What is the fine for a Crave Cookies franchisee's second infraction of legal and regulatory requirements?

Crave_Cookies Franchise · 2025 FDD

Answer from 2025 FDD Document

Third Infraction: Fine: $5,000 and consideration for termination of the franchise agreement.

II. Sharing Unit Level Sales and Performance Information Outside the Franchise Organization:

  • a. First Infraction: Immediate fine: $1,000 and mandatory meeting with corporate within 24 hours.
  • b. Second Infraction: Fine: $2,500 and potential temp

Source: Item 23 — RECEIPTS (FDD pages 47–194)

What This Means (2025 FDD)

According to Crave Cookies' 2025 Franchise Disclosure Document, a franchisee's second infraction of non-compliance with legal and regulatory requirements results in a fine of $2,500. Additionally, the franchisee may face a potential temporary closure of their Crave Cookies franchise location.

Crave Cookies outlines a clear escalation of penalties for various infractions, including non-compliance with legal and regulatory requirements. This specific penalty is designed to address repeated failures to adhere to the legal and regulatory standards set forth in the franchise agreement and Brand Standards and Operations Manual.

This policy highlights the importance Crave Cookies places on franchisees maintaining compliance. The financial penalty and potential temporary closure serve as deterrents, encouraging franchisees to prioritize adherence to legal and regulatory requirements. Franchisees should ensure they understand and comply with all applicable laws and regulations to avoid these penalties.

Prospective Crave Cookies franchisees should be aware of these potential fines and consequences and factor them into their business planning. Maintaining compliance from the outset is crucial to avoid financial penalties and potential disruptions to their business operations.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.