When is the administrative fee due to Endless Summer Sweets if they cure my non-compliance?
Endless_Summer_Sweets Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Our out-of-pocket | When billed | We may cure your non-compliance on | |
| costs and internal | your behalf (for example, if you do not | ||
| cost allocation, plus | have required insurance, we may purchase | ||
| 10% | insurance for you), and you will owe our | ||
| costs plus a 10% administrative fee. |
Source: Item 7 — Estimated Initial Investment (FDD pages 10–14)
What This Means (2024 FDD)
According to the 2024 Endless Summer Sweets Franchise Disclosure Document, if Endless Summer Sweets cures a franchisee's non-compliance on their behalf, the franchisee will owe Endless Summer Sweets their out-of-pocket costs, internal cost allocation, plus a 10% administrative fee. This fee is due when billed.
For example, if a franchisee does not have the required insurance, Endless Summer Sweets may purchase the insurance for them. The franchisee is then responsible for reimbursing Endless Summer Sweets for the cost of the insurance, plus an additional 10% to cover Endless Summer Sweets' administrative costs.
This arrangement means that franchisees need to be prepared to promptly pay these fees upon receiving a bill from Endless Summer Sweets to avoid further complications or penalties. It is important for prospective franchisees to understand the circumstances under which Endless Summer Sweets might cure non-compliance on their behalf and to factor in the potential for these additional costs when managing their business finances.