What is the initial non-compliance fee charged by Crown Gold Exchange?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
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| 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. | | Transfer fee | $10,000 plus any broker fees and other out-of-pocket costs we incur | When transfer occurs | Payable if you sell your business. | All fees are payable only to us. All fees are imposed by us and collected by us. All fees are non-refundable. All fees are uniform for all franchisees. There are currently no marketing cooperatives, purchasing cooperatives, or other cooperatives that impose fees on you.
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 fee structure is variable. If Crown Gold Exchange cures a franchisee's non-compliance on their behalf, the franchisee will owe Crown Gold Exchange their out-of-pocket costs and internal cost allocation, plus a 10% administrative fee.
Additionally, if a Crown Gold Exchange franchisee's business is not in compliance with system specifications or the franchise agreement, and they fail to correct it after 30 days’ notice, Crown Gold Exchange may charge the franchisee $500. Following this initial charge, Crown Gold Exchange may then charge $250 per week until the non-compliance is corrected.
It is important for a prospective Crown Gold Exchange franchisee to understand what constitutes non-compliance according to the franchise agreement and system specifications. Understanding these potential fees and the circumstances under which they may be charged is crucial for managing costs and maintaining a profitable franchise.