What costs and fees can Endless Summer Sweets charge a franchisee for curing a default?
Endless_Summer_Sweets Franchise · 2024 FDDAnswer from 2024 FDD Document
during an inspection. If Franchisor conducts an inspection because of a governmental report, customer complaint or other customer feedback, or a default or non-compliance with any System Standard by Franchisee, including following up a previous failed inspection, then Franchisor may charge all out-of-pocket expenses plus its then-current inspection fee to Franchisee.
- 11.3 Franchisor's Right to Cure. 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 FDD, if a franchisee defaults on any provision of the Franchise Agreement, Endless Summer Sweets has the option, but not the obligation, to take action to correct the default on the franchisee's behalf. The franchisee will be required to reimburse Endless Summer Sweets for all costs and expenses incurred while curing the default.
These costs and expenses that Endless Summer Sweets may charge include, but are not limited to, the allocation of internal costs for the action taken to cure the default. In addition to covering the costs and expenses, Endless Summer Sweets will also charge a ten percent administrative fee on top of the allocated costs.
Additionally, if Endless Summer Sweets conducts an inspection due to a governmental report, customer complaint, customer feedback, or a default/non-compliance with any System Standard by the franchisee, including following up on a previous failed inspection, Endless Summer Sweets may charge the franchisee for all out-of-pocket expenses, plus their then-current inspection fee.