What is the fine for a second infraction at a Crave Cookies franchise, and under what condition is it applied?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
arm the brand's reputation, customer trust, and operational integrity. They require immediate attention and come with substantial penalties.
- I. Significant Health and Safety Violations:
- a. First Infraction: Immediate fine: $1,000 and mandatory meeting with corporate within 24 hours.
- b. Second Infraction: Fine: $2,500 and potential temporary closure of the f franchise.
- c. 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 temporary closure of the franchise.
- c. Third Infraction: Fine: $5,000 and consideration for termination of the franchise agreement.
III. Non-Compliance with Legal and Regulatory Requirements:
a. First Infraction: Immediate fine: $1,000 and mandatory meeting with corporate within 24 hours.
- b. Second Infraction: Fine: $2,500 and potential temporary closure of the franchise.
- c. Third Infraction: Fine: $5,000 and consideration for termination of the franchise agreement.
IV. Gross Mismanagement of Financial Reporting:
- a. First Infraction: Immediate fine: $1,000 and mandatory meeting with corporate within 24 hours.
- b. Second Infraction: Fine: $2,500 and potential temporary closure of the franchise.
- c. Third Infraction: Fine: $5,000 and consideration for termination of the franchise agreement.
V. Any Action Severely Damaging the Brand Reputation:
- a. First Infraction: Immediate fine: $1,000 and mandatory meeting with corporate within 24 hours.
- b. Second Infraction: Fine: $2,500 and potential temporary closure of the franchise.
- c. Third Infraction: Fine: $5,000 and consideration for termination of the franchise agreement.
VI. Carrying Non-Approved Menu Items:
- a. First Infraction: Immediate fine: $1,000 and mandatory meeting with corporate within 24 hours.
- b. Second Infraction: Fine: $2,500 and potential temporary closure of the franchise.
- c. Third Infraction: Fine: $5,000 and consideration for termination of the franchise agreement.
Item 23 RECEIPTS
Detachable documents acknowledging your receipt of this disclosure document are attached as the last two pages of this disclosure document.
EXHIBIT A
STATE ADMINISTRATORS AND AGENTS FOR SERVICE OF PROCESS
We may register this Disclosure Document in some or all of the following states in accordance with the applicable state law.
Source: Item 23 — RECEIPTS (FDD pages 47–194)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, the fine for a second infraction varies depending on the type of infraction. For mild and moderate infractions, the FDD does not specify a fine amount. However, for severe infractions, the FDD states there is an "immediate fine" but does not specify the amount.
For specific infractions, such as sharing unit-level sales and performance information outside the franchise organization, non-compliance with legal and regulatory requirements, gross mismanagement of financial reporting, any action severely damaging the brand reputation, or carrying non-approved menu items, the fine for a second infraction is $2,500, along with a potential temporary closure of the franchise.
For unapproved packaging utilization, the fine for a second infraction is $500, and a scheduled audit within 7 days if the infraction occurs within the same 60-day period. For failure to submit weekly prep pictures, the second infraction results in shutting off online ordering until the pictures have been approved, provided it occurs within the same 60-day period. These penalties highlight the importance of adhering to Crave Cookies' standards and requirements to avoid financial penalties and operational disruptions.