Under what conditions might Endless Summer Sweets charge a $500 non-compliance fee?
Endless_Summer_Sweets Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| 6% of your gross | Weekly | See Notes 1 and Note 2. | |
| sales | |||
| 1% of your gross | You are not required at this time to pay us | ||
| sales | an advertising fee or contribute to an | ||
| advertising fund that we administer. | |||
| However, we reserve the right to establish | |||
| a system-wide advertising and marketing | |||
| fund. | |||
| We have the right to establish local or | |||
| regional advertising cooperatives. Any | |||
| location owned by us or any affiliate will | |||
| have the same voting rights as our | |||
| franchisees. Dues will be imposed by a | |||
| majority vote and will not be less than 1% | |||
| of gross sales. If any location owned by us | |||
| or any affiliates have a majority vote, the | |||
| maximum fees imposed will not exceed | |||
| 3% of gross sales. | |||
| Currently, $250 per | If you send a manager or other employee | ||
| day plus expenses | to our training program after you open, we | ||
| for travel, food, | will charge our then-current training fee. | ||
| lodging | |||
| $500 | We may charge you $500 if your business | ||
| is not in compliance with our system | |||
| specifications or the franchise agreement | |||
| and you fail to correct the non-compliance | |||
| after 30 days’ notice. Thereafter, we may | |||
| charge you $250 per week until you | |||
| correct such non-compliance. |
Source: Item 6 — Other Fees (FDD pages 7–10)
What This Means (2024 FDD)
According to Endless Summer Sweets's 2024 Franchise Disclosure Document, a franchisee may be charged a $500 non-compliance fee under specific circumstances. Endless Summer Sweets may levy this fee if a franchisee's business fails to adhere to the system specifications or the franchise agreement.
The franchisee will be given a 30-day notice to correct the issue. If the franchisee fails to rectify the non-compliance within this 30-day period, Endless Summer Sweets has the right to impose the $500 fee.
Furthermore, if the non-compliance continues beyond the initial 30-day notice, Endless Summer Sweets may charge an additional $250 per week until the franchisee resolves the issue. This escalating fee structure is designed to encourage prompt correction of any deviations from the brand's standards and the franchise agreement terms.