What is the penalty for a second infraction related to receipts for a Crave Cookies franchise?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
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 meeting with corporate within 24 hours.
II. Sharing Unit Level Sales and Performance Information Outside the Franchise Organization:
- b. Second Infraction: Fine: $2,500 and potential temporary closure of the franchise.
III. Non-Compliance with Legal and Regulatory Requirements:
- b. Second Infraction: Fine: $2,500 and potential temporary closure of the franchise.
- c. Third Infraction: Fine: $5,000 and consideration for termination of the franchise agreement.
IV. Gross Mismanagement of Financial Reporting:
- b. Second Infraction: Fine: $2,500 and potential temporary closure of the franchise.
- c. Third Infraction: Fine: $5,000 and consideration for termination of the franchise agreement.
V. Any Action Severely Damaging the Brand Reputation:
- b. Second Infraction: Fine: $2,500 and potential temporary closure of the franchise.
- c. Third Infraction: Fine: $5,000 and consideration for termination of the franchise agreement.
VI. Carrying Non-Approved Menu Items:
- b. Second Infraction: Fine: $2,500 and potential temporary closure of the franchise.
VII. Unapproved Packaging Utilization:
- b. Second Infraction: Fine: $500 and scheduled audit within 7 days (if within the same 60-day period).
VIII. Failure to Submit Weekly Prep Pictures:
- b. Second Infraction: Shutting off online ordering until pictures have been approved (if within the same 60-day period).
IX: Required Training Not Completed:
- b. Second Infraction: Fine: $500 (if training has not been scheduled and completed in a 60-day period).
X. Editing Existing Menu:
- b. Second Infraction: Fine: $500 and 30 day permission restriction
Source: Item 23 — RECEIPTS (FDD pages 47–194)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, the penalty for a second infraction depends on the severity of the infraction. For a second mild infraction, the franchisee will receive an official warning and be required to attend a mandatory review meeting. A second moderate infraction results in a fine or suspension of certain privileges, and mandatory training may be required, which could be online, virtual, or in-person. A second severe infraction results in an immediate fine and a mandatory meeting with corporate within 24 hours.
Specifically regarding sharing unit level sales and performance information outside the franchise organization, non-compliance with legal and regulatory requirements, gross mismanagement of financial reporting, any action severely damaging the brand reputation, or carrying non-approved menu items, the penalty for a second infraction is a $2,500 fine and potential temporary closure of the franchise.
For unapproved packaging utilization, the second infraction results in a $500 fine and a scheduled audit within 7 days if the infraction occurs within the same 60-day period. For failure to submit weekly prep pictures, the second infraction results in shutting off online ordering until pictures have been approved, if within the same 60-day period. For required training not completed, the second infraction results in a $500 fine if training has not been scheduled and completed in a 60-day period. For editing an existing menu, the second infraction results in a $500 fine and a 30-day permission restriction.
Prospective Crave Cookies franchisees should carefully review Exhibit L of the FDD, titled "Compliance, Violations and Fees," along with the Brand Standards and Operations Manual, to fully understand the specific infractions and associated penalties. Understanding these potential penalties is crucial for maintaining compliance and avoiding costly fines or other repercussions.