What administrative fee does Endless Summer Sweets charge for curing a franchisee's 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 the 2024 Endless Summer Sweets 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.
If Endless Summer Sweets chooses to cure a default, the franchisee is responsible for reimbursing Endless Summer Sweets for all associated costs and expenses. This includes any internal costs allocated to the action, in addition to a 10% administrative fee.
This means that in addition to covering the direct costs of curing the default, franchisees will also pay an extra 10% on top of those costs to Endless Summer Sweets as an administrative fee. This could potentially add a significant expense for franchisees who require the franchisor to step in and correct their defaults.