What are the potential consequences for a second infraction of the Crave Cookies franchise agreement?

According to Crave Cookies' 2025 Franchise Disclosure Document, the consequences for a second offense depend on the severity of the infraction. For a mild infraction, the franchisee will receive an official warning and be required to attend a mandatory review meeting. A moderate infraction may result in a fine or suspension of certain privileges, and the franchisee may be required to undergo mandatory training, which could be online, virtual, or in-person. A severe infraction results in an immediate fine and a mandatory meeting with corporate within 24 hours.

These escalating penalties are designed to ensure franchisees adhere to the standards and operational guidelines set by Crave Cookies. The franchisor will follow up with the franchisee within a specified correction timeframe to verify if the issue has been rectified, which may include an inspection or review of submitted evidence. This follow-up process ensures that the franchisee is taking the necessary steps to correct the infraction and prevent future occurrences.

The tiered system of penalties allows Crave Cookies to address violations in a manner that is proportionate to the severity of the infraction. This approach aims to correct issues while avoiding immediate termination unless the violation is severe enough to warrant such action. Franchisees should be aware of these potential consequences and strive to maintain compliance with the franchise agreement and operational standards to avoid penalties.