What costs are included in the non-compliance cure costs and fee that Crown Gold Exchange may charge?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks | |
|---|---|---|---|---|
| Non-compliance | Our out-of-pocket When billed | When billed | We may cure your non-compliance on | |
| cure costs and fee | costs and internal cost allocation, plus 10% | your behalf (for example, if you do not have required insurance, we may purchase insurance for you), and you will owe our costs plus a 10% administrative fee. |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 12–15)
What This Means (2024 FDD)
According to Crown Gold Exchange's 2024 Franchise Disclosure Document, if a franchisee is non-compliant with the franchise agreement, Crown Gold Exchange may take action to correct the non-compliance on the franchisee's behalf.
In such instances, Crown Gold Exchange will bill the franchisee for their out-of-pocket costs and internal cost allocation, in addition to a 10% administrative fee. For example, if a franchisee fails to maintain the required insurance coverage, Crown Gold Exchange might purchase the necessary insurance and then charge the franchisee for the cost of the insurance, plus the 10% administrative fee.
This non-compliance cure cost and fee is due when billed. It is important for prospective franchisees to understand the potential circumstances that could lead to non-compliance and the associated costs, as these can add to the overall investment and operational expenses.