Franchisor Compliance

Answer

Franchisor fees will be reduced by 25% if the Franchisor is fully compliant with the Franchisor Agreement and Manual, of which one fifth will be foregone if the Franchisor fails to comply in each of these areas:

1. The Selection process
2. Pro-active contacts
3. Complaints process
4. Meetings
5. Failure to reach 75 training points in any calendar year

Thus, for example, a Franchisor who failed to follow guidelines for pro-active contacts and meetings, but is otherwise compliant. would be given a 15% compliance discount.

Compliance discounts will be restored once the Franchisor demonstrates full compliance.

Failure to pay fees on time will result in entire loss of the compliance discount for that month.