What does the non-compliance cure cost and fee cover for a Crown Gold Exchange franchise?
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. |
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, the non-compliance cure costs and fee cover the brand's out-of-pocket costs and internal cost allocation, plus a 10% administrative fee.
This means that if a franchisee fails to comply with certain requirements, such as maintaining the required insurance, Crown Gold Exchange may take action to correct the non-compliance on the franchisee's behalf. The franchisee will then be responsible for reimbursing Crown Gold Exchange for the expenses incurred in curing the non-compliance.
The costs include not only the direct out-of-pocket expenses but also an allocation of Crown Gold Exchange's internal costs associated with addressing the non-compliance. In addition to these costs, Crown Gold Exchange charges a 10% administrative fee. The amount is due when billed.
For a prospective franchisee, this highlights the importance of adhering to all franchise agreement requirements to avoid incurring these additional costs. It is also important to understand what constitutes non-compliance and what steps Crown Gold Exchange might take to cure it, as well as how those costs are calculated and billed.