What administrative fee does Endless Summer Sweets charge for curing a default?
Endless_Summer_Sweets Franchise · 2024 FDDAnswer from 2024 FDD Document
If Franchisee breaches or defaults under any provision of this Agreement, Franchisor may, but shall not be obligated to, take any action to cure the default on behalf of Franchisee, without any liability to Franchisee.
Franchisee shall reimburse Franchisor for its costs and expenses.
Including without limitation, the allocation of any internal costs for such action, plus a ten percent (10%) administrative fee.
Source: Item 23 — RECEIPTS (FDD pages 39–125)
What This Means (2024 FDD)
According to Endless Summer Sweets' 2024 Franchise Disclosure Document, if a franchisee defaults on any provision of the Franchise Agreement, Endless Summer Sweets has the option to take action to correct the default on the franchisee's behalf, without incurring any liability.
In such instances, the franchisee is required to reimburse Endless Summer Sweets for all associated costs and expenses, which includes any internal costs incurred, in addition to a 10% administrative fee. This means that if Endless Summer Sweets steps in to resolve a franchisee's default, the franchisee will not only have to cover the direct costs incurred by Endless Summer Sweets but also pay an additional 10% on top of those costs to cover administrative overhead.
This policy incentivizes franchisees to maintain compliance with the franchise agreement, as failure to do so could result in additional expenses beyond the direct costs of correcting the default. Franchisees should be aware of this provision and factor it into their operational planning and financial management to avoid potential default situations and the associated fees.