If Crown Gold Exchange cures my non-compliance, what additional administrative fee will I owe?
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. | ||
| Transfer fee | $10,000 plus any When transfer occurs broker fees and other out-of-pocket costs we incur | Payable if you sell your business. |
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 you are non-compliant with the Franchise Agreement, Crown Gold Exchange has the option to cure the non-compliance on your behalf. This might occur if you fail to maintain required insurance, in which case Crown Gold Exchange may purchase the insurance for you.
In the event that Crown Gold Exchange cures your non-compliance, you will be responsible for covering their out-of-pocket costs and internal cost allocation. In addition to these costs, Crown Gold Exchange will charge a 10% administrative fee. The costs and fee are due when billed.
It is important for prospective franchisees to understand the circumstances under which Crown Gold Exchange might cure non-compliance and the potential costs involved. Franchisees should maintain open communication with Crown Gold Exchange to ensure compliance and avoid incurring these additional fees.