What is the fine for a Crave Cookies franchisee's third offense severe 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, a franchisee's third 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.
For a prospective Crave Cookies franchisee, this means that consistent failure to correct severe infractions can lead to significant financial penalties and even the loss of their franchise. The franchisor, Crave Cookies Franchising, LLC, outlines a process of written warnings, opportunities for correction, and escalating penalties based on the severity and frequency of the infraction.
It is important to note that the FDD specifies that Crave Cookies Franchising, LLC will document every step of the process, including warnings, communications, and the franchisee's responses. This documentation underscores the importance of franchisees addressing issues promptly and maintaining open communication with the franchisor to avoid escalation of penalties and potential termination.
This type of escalating penalty system is common in franchising to ensure brand standards and operational compliance across all locations. Franchisees should carefully review the Brand Standards and Operations Manual, as well as Attachment 4 to the Franchise Agreement, to fully understand the compliance expectations and potential consequences of violations.