Under the Crave Cookies Franchise Agreement, what is the timeframe for lack of communication that triggers inclusion in Exhibit H?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
tandards and Operations Manual.
- III. Typical timeframes:
- a. Mild Infractions: 7-14 days.
- b. Moderate Infractions: 24 hours to 7 days.
- c. Severe Infractions: Immediate to 24 hours.
42
B. Correction Guidelines:
- I. The written notice will include detailed instructions or guidelines on how to correct the infraction.
- II. Crave Cookies Franchising, LLC will offer resources and support, such as training sessions, to help the franchisee address the issue.
Section 3. FOLLOW-UP AND ESCALATION
A. Follow-Up Communication:
- I. Crave Cookies Franchising, LLC will follow up with the franchisee within the specified correction time frame to verify if the issue has been rectified.
- II. Follow-up will include an inspection or review of submitted evidence (e.g., photos, reports).
B. Escalation of Penalties:
- I. If the infraction is not corrected within the specified timeframe, penalties will 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 meeting with corporate within 24 hours.
c. Third Offense:
- i. Mild Infraction: Fine of $100 and submission of a comprehensive improvement plan.
- ii. Moderate Infraction: Fine of $1,000 and foll
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2025 FDD)
Based on the 2025 Crave Cookies Franchise Disclosure Document, Exhibit H pertains to compliance, violations, and fees, detailing the process for addressing infractions of the franchise agreement or Brand Standards and Operations Manual. The document outlines a system of written notices, opportunities for correction, and follow-up communication.
The Crave Cookies Franchising, LLC will follow up with the franchisee within the specified correction timeframe to verify if the issue has been rectified. This follow-up includes an inspection or review of submitted evidence, such as photos or reports. If an infraction is not corrected within the set timeframe, penalties will increase based on the severity tier.
The penalties for not correcting issues within the specified timeframes range from verbal or written warnings for a first offense, to fines and mandatory meetings for second offenses, and potentially leading to franchise agreement termination for third severe offenses. Crave Cookies Franchising, LLC thoroughly documents every step of the process, including warnings, communications, and franchisee responses.
However, the excerpt does not specify a timeframe related to a 'lack of communication' that would trigger inclusion in Exhibit H. The document focuses on the timeframe for correcting identified infractions, not on consequences related to a lack of communication itself. A prospective franchisee should ask the franchisor for clarification on what constitutes a lack of communication and what specific timeframe would trigger inclusion in Exhibit H.