What is a Crown Gold Exchange franchisee required to do regarding deficiencies noted during an inspection?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
g may videotape and/or take photographs of the inspection and the Business. Crown Gold Franchising may set a minimum score requirement for inspections, and Franchisee's failure to meet or exceed the minimum score will be a default under this Agreement. Without limiting Crown Gold Franchising's other rights under this Agreement, Franchisee will, as soon as reasonably practical, correct any deficiencies noted during an inspection. If Crown Gold Franchising conducts an inspection because of a governmental report, customer complaint or other customer feedback, or a default or non-compliance with any System Standard by Franchisee (including following up a previous failed inspection), then Crown Gold Franchising may charge all out-of-pocket expenses plus its then-current inspection fee to Franchisee.
- 11.3 Crown Gold Franchising's Right to Cure. If Franchisee breaches or defaults under any provision of this Agreement, Crown Gold Franchising may (but has no obligation to) take any action to cure the default on behalf of Franchisee, without any liability to Franchisee. Franchisee shall reimburse Crown Gold Franchising for its costs and expenses (including the allocation of any internal costs) for such action, plus 10% as an administrative fee.
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to the 2024 Crown Gold Exchange Franchise Disclosure Document, a franchisee is required to correct any deficiencies noted during an inspection as soon as reasonably practical. This means that if Crown Gold Franchising identifies issues during an inspection of the franchisee's business, the franchisee must take action to fix those problems in a timely manner.
Crown Gold Franchising also has the right to cure any default on behalf of the franchisee without any liability. If Crown Gold Franchising chooses to take action to correct the default, the franchisee is responsible for reimbursing Crown Gold Franchising for all costs and expenses incurred, including a 10% administrative fee.
Crown Gold Franchising may also set a minimum score requirement for inspections, and failure to meet or exceed the minimum score will be a default under the Franchise Agreement. If an inspection is conducted due to a governmental report, customer complaint, or a default or non-compliance with any System Standard, Crown Gold Franchising may charge the franchisee for all out-of-pocket expenses plus its then-current inspection fee.