Under what circumstances does Crown Gold Exchange charge its actual costs?

According to Crown Gold Exchange's 2024 Franchise Disclosure Document, the company may charge franchisees their actual costs under several specific circumstances. These costs are in addition to other fees outlined in the FDD.

First, Crown Gold Exchange may charge its actual costs, including reasonable attorney fees, if it incurs expenses while attempting to collect payments owed by the franchisee. Second, if a franchisee requests in-person support, Crown Gold Exchange may charge its actual costs plus any out-of-pocket expenses, such as travel, lodging, and meals, for the employees providing the support. Third, if Crown Gold Exchange responds to a customer complaint about a franchisee's business, the franchisee may be required to reimburse Crown Gold Exchange for its expenses.

Finally, Crown Gold Exchange may charge its actual costs if it conducts an audit of the franchisee due to either the franchisee's failure to submit required reports or other non-compliance issues, or if the audit reveals that the franchisee under-reported gross sales. Similarly, actual costs may be charged if Crown Gold Exchange conducts an inspection of the franchisee's business due to a governmental report, customer complaint or other customer feedback, or the franchisee's default or non-compliance with any system specification. These situations highlight the importance of franchisees maintaining compliance with the franchise agreement and system standards to avoid incurring additional costs.