Under what conditions will Endless Summer Sweets charge a non-compliance fee?
Endless_Summer_Sweets Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| $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. | |||
| 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, a non-compliance fee may be charged under specific circumstances. Endless Summer Sweets may charge a franchisee $500 if the business is not in compliance with the system specifications or the franchise agreement.
The franchisee will be given 30 days' notice to correct the non-compliance. If the franchisee fails to correct the non-compliance within the 30-day notice period, Endless Summer Sweets may charge $500. Furthermore, Endless Summer Sweets may charge $250 per week until the franchisee corrects the non-compliance.
Endless Summer Sweets may also cure the non-compliance on the franchisee's behalf. For example, if the franchisee does not have the required insurance, Endless Summer Sweets may purchase the insurance for them. In this case, the franchisee will owe Endless Summer Sweets their costs plus a 10% administrative fee.