Are non-compliance fees for Crave Cookies due immediately upon receipt?
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' 2025 Franchise Disclosure Document, non-compliance fees are due immediately upon receipt. If a franchisee fails to comply with Crave Cookies' policies, procedures, system, or the Franchise Agreement (excluding non-payment of fees), they will be subject to fines and charges as detailed in the Brand Standards Manual.
Crave Cookies considers these fees a reasonable estimate of the internal personnel costs associated with addressing the non-compliance, and not a penalty or estimate of all potential damages from the breach. These non-compliance fees are in addition to any other rights and remedies available to Crave Cookies, including default and termination of the agreement.
Prospective Crave Cookies franchisees should carefully review the Brand Standards Manual to understand the specific actions that could trigger non-compliance fees and the amounts of those fees. Understanding these potential costs and compliance requirements is essential for managing the financial and operational aspects of the franchise.