How much is the initial non-compliance fee charged by Crown Gold Exchange?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
, Crown Gold Franchising may 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, the initial non-compliance fee is $500. This fee is charged for any instance of non-compliance with the System Standards or the Franchise Agreement, excluding non-payment of fees owed to Crown Gold Franchising.
The franchisee has 30 days to correct the non-compliance after receiving notice. If the issue remains unresolved after this period, Crown Gold Exchange may impose the $500 fee. Furthermore, Crown Gold Exchange can charge an additional $250 per week until the franchisee rectifies the non-compliance.
This fee is considered a reasonable estimate of Crown Gold Franchising's internal costs related to addressing the non-compliance and is not considered a penalty. It's important to note that this non-compliance fee is in addition to any other rights and remedies Crown Gold Franchising may have, including default and termination of the agreement.