When is the administrative fee due if Endless Summer Sweets cures 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 6 — Other Fees (FDD pages 7–10)
What This Means (2024 FDD)
According to Endless Summer Sweets's 2024 Franchise Disclosure Document, if Endless Summer Sweets cures a franchisee's non-compliance on their behalf, the administrative fee is due when billed. This situation may arise if a franchisee fails to maintain required insurance, prompting Endless Summer Sweets to purchase it for them.
The franchisee will then owe Endless Summer Sweets for the out-of-pocket costs and internal cost allocation, plus a 10% administrative fee. This means that in addition to covering the direct expenses incurred by Endless Summer Sweets to rectify the non-compliance, the franchisee will also be charged an additional 10% of those costs as an administrative fee.
This policy ensures that Endless Summer Sweets can take necessary corrective actions to maintain brand standards and operational compliance across all franchise locations, while also ensuring they are compensated for the administrative efforts and costs involved in resolving a franchisee's non-compliance issues. Franchisees should maintain all required compliance measures to avoid these additional fees.