If Endless Summer Sweets cures a franchisee's non-compliance, what costs are the franchisee responsible for?
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 a franchisee is non-compliant, Endless Summer Sweets may take action to correct the issue on the franchisee's behalf. For instance, if the franchisee fails to maintain the required insurance coverage, Endless Summer Sweets has the option to purchase the necessary insurance.
In such cases where Endless Summer Sweets cures a franchisee's non-compliance, the franchisee is responsible for covering Endless Summer Sweets's out-of-pocket costs and internal cost allocation, in addition to a 10% administrative fee.
It is important for prospective Endless Summer Sweets franchisees to understand these potential costs and ensure they maintain compliance with all requirements to avoid incurring these additional fees.