What conditions must be met before Crown Gold Exchange charges a non-compliance fee?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
ay charge its then-current training fee. As of the date of this Agreement, the training fee is $250 per day.
- 4.4 Non-Compliance Fee. Crown Gold Franchising may charge Franchisee $500 for any instance of non-compliance with the System Standards or this Agreement (other than Franchisee's non-payment of a fee owed to Crown Gold Franchising) which Franchisee fails to cure after 30 days' notice. Thereafter, Crown Gold Franchising may charge Franchisee $250 per week until
Franchisee ceases such non-compliance. This fee is a reasonable estimate of Crown Gold Franchising's internal cost of personnel time attributable to addressing the non-compliance, and it is not a penalty or estimate of all damages arising from Franchisee's breach. The non-complianc
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to Crown Gold Exchange's 2024 Franchise Disclosure Document, a franchisee may be charged a non-compliance fee of $500 if they fail to correct any instance of non-compliance with the System Standards or the Franchise Agreement. This excludes non-payment of fees owed to Crown Gold Franchising.
The franchisee must be given 30 days' notice to correct the non-compliance. If the issue remains unresolved after this period, Crown Gold Franchising can impose the $500 fee. Furthermore, Crown Gold Franchising may charge an additional $250 per week until the franchisee rectifies the non-compliance.
The document states that this fee is designed to cover Crown Gold Franchising's internal costs related to addressing the non-compliance and is not considered a penalty or a comprehensive estimate of all potential damages resulting from the franchisee's breach. This fee is in addition to any other legal rights and remedies Crown Gold Franchising may pursue, including default and termination of the agreement.