When is the non-compliance cure cost and fee due to Crown Gold Exchange?
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 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.
The non-compliance cure costs and fee are due to Crown Gold Exchange when billed. An example of non-compliance provided in the FDD is if the franchisee does not have the required insurance, Crown Gold Exchange may purchase insurance for them.
This means that if a Crown Gold Exchange franchisee fails to meet certain obligations outlined in the franchise agreement, Crown Gold Exchange might step in to rectify the situation. However, this comes at a cost to the franchisee, who will be responsible for reimbursing Crown Gold Exchange for all expenses incurred, plus an additional 10% to cover administrative overhead. Franchisees should ensure they maintain compliance to avoid these additional costs.