When is a Crisp & Green franchisee required to pay the Additional Cure fee?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee (1) | Amount | Due Date | Remarks |
|---|---|---|---|
| believe that you have failed adequately to address or resolve any customer complaints, we may, without your consent, resolve any complaints to our satisfaction and charge you an amount sufficient to cover our reasonable costs and expenses in resolving the customer complaint. | |||
| Additional Cure | Our cost and expense if we take any action to cure any default by you under the Franchise Agreement, including costs of collection for unpaid amounts | Upon demand | Due only if you are in default under your Franchise Agreement, in which case you must reimburse us for the additional expenses we incur (including reasonable attorneys' fees) as a result of your default and to enforce and terminate your Franchise Agreement if necessary. |
| Expenses and | |||
| Collection Costs |
Source: Item 6 — OTHER FEES (FDD pages 15–22)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, the Additional Cure fee is due upon demand. This fee is imposed if a franchisee is in default under their Franchise Agreement. The amount of the fee will be Crisp & Green's costs and expenses if they take action to cure any default by the franchisee. This includes costs of collection for unpaid amounts.
In practical terms, this means that if a Crisp & Green franchisee fails to meet their obligations under the Franchise Agreement, such as making payments on time or adhering to operational standards, Crisp & Green may step in to correct the issue. The franchisee will then be responsible for reimbursing Crisp & Green for all associated costs and expenses incurred during the cure process. These expenses can include attorney's fees if legal action is necessary to enforce the agreement or resolve the default.
This fee serves as a financial deterrent against non-compliance and ensures that Crisp & Green is compensated for the resources they expend in rectifying a franchisee's default. It is important for prospective franchisees to understand the terms of the Franchise Agreement and to maintain compliance to avoid incurring this additional expense. The franchisee is responsible for these costs in addition to any other remedies available to Crisp & Green.
Franchisees should be aware that the Additional Cure fee is separate from other fees and damages that may be assessed in the event of a default or termination of the Franchise Agreement. For example, the FDD mentions damages upon termination that are due 15 days after termination. Understanding the specific circumstances that trigger a default and the potential financial consequences is crucial for franchisees to manage their business effectively and maintain a positive relationship with Crisp & Green.