What costs are included in the non-compliance cure costs and fee charged by Crown Gold Exchange?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Non-compliance cure costs and fee | Our out-of-pocket costs and internal cost allocation, plus 10% | When billed | We may cure your non-compliance on 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 6 — OTHER FEES (FDD pages 10–12)
What This Means (2024 FDD)
According to Crown Gold Exchange's 2024 Franchise Disclosure Document, the non-compliance cure costs and fee include the franchisor's out-of-pocket costs, internal cost allocation, plus an additional 10%. This fee is charged when Crown Gold Exchange cures a franchisee's non-compliance on their behalf.
For a prospective Crown Gold Exchange franchisee, this means that if they fail to meet certain requirements (such as maintaining required insurance), Crown Gold Exchange may step in to rectify the situation. The franchisee will then be responsible for reimbursing Crown Gold Exchange for all associated expenses, which include not only the direct costs incurred by Crown Gold Exchange but also an additional 10% administrative fee.
This policy highlights the importance of franchisees adhering to all requirements outlined in the franchise agreement to avoid incurring these additional costs. While it can be beneficial for a franchisee to have Crown Gold Exchange resolve compliance issues, it's crucial to understand that this service comes at a premium, potentially impacting the franchisee's profitability. Franchisees should clarify what specific actions might trigger this intervention and what typical costs could be involved to budget accordingly.