Under what conditions may Crave Cookies Franchising require a Franchisee to reimburse them for expenses related to customer complaints?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.14 Customer Complaints. Franchisee shall use its best efforts to promptly resolve any customer complaints.
Crave Cookies Franchising may take any action it deems appropriate to resolve a customer complaint regarding the Business, and Crave Cookies Franchising may require Franchisee to reimburse Crave Cookies Franchising for any expenses.
- 11.2 Inspections. Crave Cookies Franchising may enter the premises of the Business from time to time during normal business hours and conduct an inspection.
If Crave Cookies Franchising conducts an inspection because of a governmental report, customer complaint or other customer feedback, or a default or non-compliance with any System Standard by Franchisee (including following up a previous failed inspection), then Crave Cookies Franchising may charge all out-of-pocket expenses plus its then-current inspection fee to Franchisee.
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies's 2025 Franchise Disclosure Document, a franchisee may be required to reimburse Crave Cookies Franchising for expenses related to customer complaints if Crave Cookies Franchising deems it appropriate to take action to resolve a customer complaint regarding the franchisee's business. This means that if a customer has a negative experience at a Crave Cookies franchise, the franchisor can step in to address the issue and then bill the franchisee for any costs incurred.
This could include a wide range of expenses, such as the cost of providing complimentary products or services to the customer, the cost of investigating the complaint, or the cost of hiring a third party to mediate the dispute. The FDD does not specify a limit to these expenses, so it is important for prospective franchisees to understand that they could potentially be responsible for significant costs if customer complaints arise.
Additionally, if Crave Cookies conducts an inspection due to a customer complaint or other customer feedback, they may charge the franchisee for all out-of-pocket expenses plus their then-current inspection fee. This highlights the importance of maintaining high standards of customer service and resolving complaints promptly at the local level to avoid potential intervention and associated costs from Crave Cookies Franchising. Franchisees should prioritize customer satisfaction to minimize the risk of incurring these expenses.