How long does a Crown Gold Exchange franchisee have to cure non-compliance before a fee is charged?
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 the 2024 Crown Gold Exchange Franchise Disclosure Document, a franchisee has 30 days to correct any non-compliance issues with the System Standards or the Franchise Agreement before incurring a fee. This excludes non-payment of fees owed to Crown Gold Franchising.
If the franchisee fails to resolve the non-compliance within this 30-day period after receiving notice, Crown Gold Exchange may impose a non-compliance fee of $500. Additionally, Crown Gold Exchange can charge the franchisee $250 per week until the non-compliance is resolved.
This fee structure is designed to cover Crown Gold Exchange's internal costs related to addressing the franchisee's non-compliance and is separate from any other legal remedies Crown Gold Exchange might pursue, including termination of the franchise agreement. It is important for prospective franchisees to understand these terms to avoid potential financial penalties and maintain compliance with the franchise agreement.