What are the 'Development Shop Initial Franchise Fees' for a Bang Cookies franchise?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
shall not be deemed to waive, or render unnecessary, consent or approval of any other subsequent similar act or request.
IN WITNESS WHEREOF, the parties have executed, sealed and delivered this Agreement as of the Effective Date set forth in the first paragraph of this Agreement.
Franchisor: Franchisee:
| By: | Signature |
|---|---|
| Signature | |
| Name and Title (please print) | Name (please print) |
| Dated | Dated |
| | Development Area | |---|---| | [To be Effective this Schedule Must be Completed and Signed by Franchisor] | |
| Development Shop Initial Franchise Fee for the First Development Shop | |
|---|---|
| FIRST DEVELOPMENT SHOP: The Development Shop Initial Franchise Fee for the First Development Shop | |
| is: $35,000, payable and due upon execution of the applicable Franchise Agreement for the First Development | |
| Shop. This initial franchise fee is separate from and in addition to the Development Area Fee. |
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies' 2024 Franchise Disclosure Document, the initial franchise fee for the first development shop is $35,000. This fee is payable upon the execution of the applicable Franchise Agreement for the first development shop and is separate from and in addition to the Development Area Fee.
For any additional development shops beyond the first, the initial franchise fee is waived, effectively setting it at $0. This waiver is contingent upon the franchisee remaining in compliance with the terms of the Bang Cookies Multi-Unit Development Agreement, including adherence to the Development Schedule, and ensuring that neither the franchisee nor their affiliates are in default of any Franchise Agreement.
This fee structure incentivizes multi-unit development by reducing the financial burden for subsequent locations. However, franchisees must carefully adhere to the development schedule and maintain compliance with all agreements to benefit from the waived fees for additional shops. Prospective franchisees should carefully review the Development Information Sheet and the terms of the Franchise Agreement to fully understand the obligations and conditions related to these fees.