If Endless Summer Sweets cures my non-compliance, what additional administrative fee will I owe?
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' 2024 Franchise Disclosure Document, if you are non-compliant with the franchise agreement, Endless Summer Sweets may choose to cure the non-compliance on your behalf. For example, if you do not have the required insurance, Endless Summer Sweets may purchase it for you.
In the event that Endless Summer Sweets cures your non-compliance, you will owe Endless Summer Sweets their out-of-pocket costs and internal cost allocation, plus a 10% administrative fee. The FDD does not specify how 'out-of-pocket costs' or 'internal cost allocation' are calculated, so it is important to clarify these terms with Endless Summer Sweets before signing the franchise agreement.
It is important to note that this fee is in addition to any other fees that you may owe Endless Summer Sweets for non-compliance, such as the $500 fee for failure to correct non-compliance after 30 days' notice, and the $250 per week fee until the non-compliance is corrected.