What costs are included in the non-compliance cure costs and fee for a Crown Gold Exchange franchise?
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 fails to comply with the franchise agreement, Crown Gold Exchange may take action to correct the non-compliance on the franchisee's behalf.
The costs for this are the franchisee's responsibility and include Crown Gold Exchange's out-of-pocket costs, internal cost allocation, and an additional administrative fee of 10%. For example, if a franchisee does not maintain the required insurance, Crown Gold Exchange may purchase the insurance coverage and bill the franchisee for the cost of the insurance, plus the 10% administrative fee.
This means that franchisees need to be aware of all compliance requirements outlined in the franchise agreement and maintain them to avoid incurring these additional costs. It is important to note that these costs are billed when incurred, so franchisees should be prepared to pay them promptly to avoid further penalties or complications with their franchise agreement.