When are non-compliance fees due from a Crave Cookies franchisee?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
4.5 Non-Compliance Fee. If Franchisee does not comply with Crave Cookies Franchising's policies, procedures System, or this Agreement (other than Franchisee's non-payment of a fee owed to Crave Cookies Franchising), Franchisee will be subject to fines and charges as set forth in Crave Cookies Franchising's Brand Standards Manual. These fines and charges for non-compliance are due upon receipt. These fees are a reasonable estimate of Crave Cookies Franchising's internal cost of personnel time attributable to addressing the non-compliance, and it is not a penalty or estimate of all damages arising from Franchisee's breach. The non-compliance fees are in addition to all of Crave Cookies Franchising's other rights and remedies (including default and termination under Section 14.2). Detailed information is in Attachment 4 of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies's 2025 Franchise Disclosure Document, if a franchisee fails to comply with Crave Cookies's policies, procedures, system, or the Franchise Agreement (excluding non-payment of fees owed to Crave Cookies), they will be subject to fines and charges as detailed in the Brand Standards Manual. These non-compliance fees are due upon receipt. The FDD states that these fees are considered a reasonable estimate of Crave Cookies's internal personnel costs associated with addressing the non-compliance, and they are not a penalty or an estimate of all potential damages resulting from the franchisee's breach. These fees are in addition to any other rights and remedies available to Crave Cookies, including default and termination of the agreement. Attachment 4 of the Franchise Agreement provides detailed information on compliance, violations, and associated fees.
When Crave Cookies identifies an infraction, they will provide a written notice to the franchisee via email. This notice will specify the infraction, reference the violated section of the franchise agreement or Brand Standards and Operations Manual, and indicate the severity level of the infraction (Mild, Moderate, or Severe). The notice will also include the date and time the infraction was observed.
The franchisee will be given a timeframe to correct the issue, with the timeframe based on the severity of the infraction. Typical timeframes are 7-14 days for mild infractions, 24 hours to 7 days for moderate infractions, and immediate to 24 hours for severe infractions. The written notice will include detailed instructions on how to correct the infraction, and Crave Cookies will offer resources and support, such as training sessions, to help the franchisee address the issue.
Franchisees should carefully review the Brand Standards Manual and Attachment 4 to fully understand the potential non-compliance issues and associated fees. Understanding these requirements and maintaining compliance is crucial for avoiding unexpected costs and maintaining a positive relationship with Crave Cookies.