factual

Who is responsible for covering the costs incurred by Crave Cookies Franchising when attempting to collect payments owed by a Crave Cookies franchisee?

Crave_Cookies Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (e) Costs of Collection. Franchisee shall repay any costs incurred by Crave Cookies Franchising (including reasonable attorney fees) in attempting to collect payments owed by Franchisee.

Source: Item 22 — CONTRACTS (FDD page 47)

What This Means (2025 FDD)

According to Crave Cookies' 2025 Franchise Disclosure Document, the franchisee is responsible for repaying any costs incurred by Crave Cookies when they attempt to collect payments owed by the franchisee. These costs include reasonable attorney fees.

This means that if a Crave Cookies franchisee fails to make timely payments, they will not only be subject to late fees and interest on the unpaid amount, but they will also have to cover any legal expenses Crave Cookies incurs while trying to recover the owed payments. This could significantly increase the financial burden on a franchisee who is already struggling to meet their financial obligations.

This is a fairly standard clause in franchise agreements. It is designed to protect the franchisor from incurring losses due to franchisees' failure to pay. Prospective franchisees should be aware of this provision and ensure they have a solid financial plan in place to avoid falling behind on payments and incurring additional costs.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.