What is the fine for a third infraction of improper uniform or apparel 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 22 — CONTRACTS (FDD page 47)
What This Means (2025 FDD)
Based on the 2025 Crave Cookies Franchise Disclosure Document, the fines for a third offense depend on the severity of the infraction. For a mild infraction, the franchisee will be fined $100 and must submit a comprehensive improvement plan. A moderate infraction results in a $1,000 fine, a follow-up audit within 30 days, and a detailed improvement plan. Additionally, if the franchisee maintains a 4.5-star rating, they must hire a reputation management and improvement company. A severe infraction carries a $5,000 fine and may lead to the termination of the franchise agreement.
Crave Cookies outlines a structured approach to addressing infractions, starting with an initial written notice that identifies the specific violation, references the relevant section of the franchise agreement or Brand Standards and Operations Manual, and indicates the severity level. Franchisees are given an opportunity to correct the issue within a specified timeframe, which varies based on the severity of the infraction. Mild infractions typically allow 7-14 days for correction, moderate infractions 24 hours to 7 days, and severe infractions require immediate to 24-hour correction.
Crave Cookies Franchising, LLC follows up to verify if the issue has been resolved, which may include an inspection or review of submitted evidence. If the infraction is not corrected within the given timeframe, penalties escalate according to the severity tier. The franchisor thoroughly documents every step of the process, including warnings, communications, and the franchisee's responses. Termination of the franchise agreement is considered a last resort, reserved for egregious violations, and Crave Cookies Franchising, LLC ensures a fair process is followed, including providing written notice and an opportunity for the franchisee to respond, along with support for transition to minimize disruption.