What is required of a Crave Cookies franchisee after a third infraction for minor cleanliness issues?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
ill escalate according to the severity tier.
- a. First Offense: Verbal warning or a formal written warning, documented in the franchisee's file.
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 mee
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, the consequences for a third offense depend on the severity of the infraction. For a mild infraction, the franchisee will be fined $100 and must submit a comprehensive improvement plan. For a moderate infraction, the franchisee will be fined $1,000, undergo a follow-up audit within 30 days, and submit a detailed improvement plan; additionally, if the store maintains a 4.5-star rating, they must hire a reputation management and improvement company. For a severe infraction, the franchisee will be fined $5,000, and Crave Cookies will consider terminating the franchise agreement.
These penalties highlight the importance Crave Cookies places on maintaining brand standards and operational compliance. The escalating fines and required improvement plans are designed to motivate franchisees to correct issues promptly and prevent repeat offenses. The potential for termination after a third severe infraction underscores the seriousness with which Crave Cookies views significant breaches of the franchise agreement.
Prospective franchisees should be aware of these potential penalties and ensure they have systems in place to maintain cleanliness and operational standards. Understanding the specific criteria that define mild, moderate, and severe infractions will be crucial for avoiding these penalties. It would be prudent for potential franchisees to discuss specific examples of infractions and the criteria used to determine their severity with Crave Cookies during their due diligence process.