If Crave Cookies Franchising cures a franchisee's default, what must the franchisee reimburse?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
- 11.3 Crave Cookies Franchising's Right to Cure. If Franchisee breaches or defaults under any provision of this Agreement, Crave Cookies Franchising may (but has no obligation to) take any action to cure the default on behalf of Franchisee, without any liability to Franchisee.
Franchisee shall reimburse Crave Cookies Franchising for its costs and expenses (including the allocation of any internal costs) for such action, plus 10% as an administrative fee.
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, if a franchisee defaults on any provision of the Franchise Agreement, Crave Cookies Franchising has the option to take action to cure the default on behalf of the franchisee, without incurring any liability.
In such instances where Crave Cookies Franchising elects to cure a default, the franchisee is obligated to reimburse Crave Cookies Franchising for all costs and expenses incurred. This includes not only the direct costs but also an allocation of internal costs associated with the action taken to cure the default.
Furthermore, Crave Cookies Franchising will add an additional 10% to the total costs and expenses as an administrative fee. This means that the franchisee's reimbursement will cover the franchisor's expenses, internal costs, and an additional 10% charge for administrative overhead.