When is the Reimbursement of Cost and Expenses for Non-compliance fee due to Devon Creek?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
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| -J P | Amount | Due Date | Remarks |
|---|---|---|---|
| Late Payment Fee | $50 per day | As incurred | If you fail to pay us the Continuing Royalty Fee, Brand Fund Fee, or if you fail to submit your Gross Revenue report when due, we may charge you $50 per day for each late submission in addition to interest charges explained below. |
| Non-sufficient Funds Fee | $250 | As incurred | If your check is returned or an electronic funds transfer from your bank account is denied for insufficient funds, for each occurrence we may charge you a Non-sufficient Funds Fee. |
| Reimbursement of Cost | Actual costs and expenses | As incurred. | See footnote 10. |
| and Expenses for Non- |
Source: Item 6 — OTHER FEES (FDD pages 8–16)
What This Means (2024 FDD)
According to Devon Creek's 2024 Franchise Disclosure Document, the Reimbursement of Cost and Expenses for Non-compliance is due as incurred. This means that the franchisee is responsible for paying these costs and expenses at the time they are incurred by Devon Creek.
These costs are related to instances where the franchisee has failed to comply with the terms and conditions outlined in the franchise agreement. The specific details regarding what constitutes non-compliance are found in footnote 10 of the FDD, which is not provided in the excerpt.
As a prospective Devon Creek franchisee, it's crucial to understand the specific actions or omissions that could trigger this reimbursement. You should carefully review the franchise agreement and ask Devon Creek for clarification on what constitutes non-compliance and how these costs are calculated to avoid unexpected expenses.