Under what conditions will Crown Gold Exchange charge a non-compliance cure costs and fee?
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, Crown Gold Exchange may charge a non-compliance cure costs and fee if they cure a franchisee's non-compliance on the franchisee's behalf. This means that if a franchisee fails to meet certain requirements, such as maintaining required insurance, Crown Gold Exchange might step in to rectify the situation.
In such instances, Crown Gold Exchange will bill the franchisee for their out-of-pocket costs and internal cost allocation, in addition to a 10% administrative fee. For example, if the franchisee does not have the required insurance, Crown Gold Exchange may purchase the insurance for them. The franchisee is then responsible for reimbursing Crown Gold Exchange for the cost of the insurance, plus the 10% administrative fee.
This policy ensures that franchisees remain compliant with the franchise agreement, while also providing Crown Gold Exchange with a mechanism to recover expenses incurred while ensuring compliance. The fee is due when billed.