Under what circumstances will Endless Summer Sweets charge its actual costs to a franchisee?

According to Endless Summer Sweets's 2024 Franchise Disclosure Document, the franchisor may charge franchisees their actual costs in several specific situations. These costs are payable if Endless Summer Sweets incurs costs, including reasonable attorney fees, while attempting to collect amounts the franchisee owes them. Additionally, if Endless Summer Sweets provides in-person support at a franchisee's request, they may charge their actual costs plus any out-of-pocket expenses, such as travel, lodging, and meals for employees providing onsite support.

Endless Summer Sweets may also take action to resolve a customer complaint about a franchisee's business and require the franchisee to reimburse them for their expenses. Furthermore, franchisees may be responsible for covering the franchisor's actual costs if an audit is conducted due to the franchisee's failure to submit required reports or other non-compliance, or if the audit reveals that the franchisee under-reported gross sales.

Finally, Endless Summer Sweets may charge its actual costs if they conduct an inspection of the franchisee's business due to a governmental report, customer complaint or other customer feedback, or the franchisee's default or non-compliance with any system specification. These provisions highlight the importance of franchisees maintaining compliance with the franchise agreement and system standards to avoid incurring additional costs.