Under what conditions might Crown Gold Exchange cure a franchisee's non-compliance on their behalf?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Non-compliance cure costs and fee | Our out-of-pocket costs and internal cost allocation, plus 10% | When billed | We may cure your non-compliance on 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 6 — OTHER FEES (FDD pages 10–12)
What This Means (2024 FDD)
According to Crown Gold Exchange's 2024 Franchise Disclosure Document, Crown Gold Exchange may address a franchisee's non-compliance issues directly. Specifically, Crown Gold Exchange may choose to cure the non-compliance on behalf of the franchisee. An example provided in the FDD is if a franchisee fails to maintain the required insurance coverage, Crown Gold Exchange might purchase the necessary insurance themselves.
If Crown Gold Exchange cures a franchisee's non-compliance, the franchisee is responsible for reimbursing Crown Gold Exchange for all associated costs. This reimbursement includes Crown Gold Exchange's out-of-pocket expenses and an additional internal cost allocation, plus an administrative fee of 10%. The franchisee is obligated to pay this amount when billed by Crown Gold Exchange.
This arrangement means that franchisees must be prepared to cover these potential costs if they fail to meet certain compliance requirements outlined in the franchise agreement. It also highlights the importance of maintaining open communication with Crown Gold Exchange to avoid situations where the franchisor needs to step in to ensure compliance. Franchisees should ensure they understand all compliance requirements and maintain the necessary documentation to avoid incurring these additional fees.