When is the non-compliance cure costs and fee due 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. | ||
| 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, non-compliance cure costs and fees are due 'when billed.' These costs cover situations where Crown Gold Exchange steps in to correct a franchisee's non-compliance issues, such as purchasing required insurance if the franchisee fails to do so.
In such instances, the franchisee is responsible for reimbursing Crown Gold Exchange for their out-of-pocket expenses and internal cost allocation, along with an additional 10% administrative fee. This policy ensures that Crown Gold Exchange can maintain brand standards and operational compliance across all franchise locations, while also recovering the costs associated with rectifying franchisee shortcomings.
Prospective franchisees should be aware of this potential expense and ensure they understand the compliance requirements outlined in the franchise agreement to avoid incurring these fees. Maintaining proper insurance and adhering to other operational standards will help franchisees avoid non-compliance and the associated costs.