What is the cure period allowed before Crown Gold Exchange charges the 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 has 30 days to correct any non-compliance issues with the System Standards or the Franchise Agreement (excluding non-payment of fees) after receiving notice from Crown Gold Exchange. If the franchisee fails to resolve the non-compliance within this 30-day period, Crown Gold Exchange may impose a non-compliance fee of $500.
Following the initial $500 fee, Crown Gold Exchange can charge an additional $250 per week until the franchisee rectifies the non-compliance. This fee structure is designed to cover Crown Gold Exchange's internal costs related to addressing the franchisee's non-compliance and is not considered a penalty or a comprehensive estimate of all potential damages resulting from the breach.
This policy incentivizes franchisees to promptly address any operational or contractual issues. Franchisees should be aware of the System Standards and the terms of the Franchise Agreement to avoid non-compliance and the associated fees. It is also important to note that the non-compliance fee is in addition to any other legal remedies Crown Gold Exchange may pursue, including termination of the franchise agreement under Section 14.2.