For Crave Cookies franchisees, what is the penalty for a third infraction of failing to follow the sales script?
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, the penalties for a third offense are determined by the severity of the infraction. For a mild infraction, the franchisee will face a fine of $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. For a severe infraction, the penalty is a $5,000 fine, and Crave Cookies will consider terminating the franchise agreement.
These penalties highlight the importance Crave Cookies places on compliance with its standards and the potential financial and operational consequences of repeated violations. The escalating fines and required improvement plans are designed to encourage franchisees to correct issues promptly and maintain brand standards. The inclusion of reputation management for moderate infractions with a 4.5-star rating suggests a focus on maintaining customer satisfaction and brand image.
For a prospective Crave Cookies franchisee, this escalation policy underscores the need for thorough training and consistent adherence to the brand's operational guidelines. Understanding the specific criteria that define mild, moderate, and severe infractions is crucial to avoiding these penalties. Franchisees should also be prepared to invest in improvement plans and potentially reputation management services if they fail to meet the required standards. The ultimate penalty of potential franchise termination for severe infractions emphasizes the critical nature of compliance with Crave Cookies' standards.
It is important to note that the FDD excerpt does not specifically define what constitutes a failure to follow the sales script, nor does it clarify how such failures are classified as mild, moderate, or severe. A prospective franchisee should seek clarification from Crave Cookies regarding these definitions to fully understand the potential consequences of non-compliance.