Are the fees described in the table for Bang Cookies refundable?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
Note 1: Type of Fee – The above table describes fees and payments that you must pay to us, our affiliates, or that our affiliates may impose or collect on behalf of a third party. All fees are uniformly imposed for all franchises offered under this Disclosure Document, are recurring, are not refundable, and are payable to us, unless otherwise specified. If you enter into a Multi-Unit Development Agreement or open multiple Shops then these fees shall apply, respectively, to each and every Shop. Payment is subject to our specification and instruction, including, our election to have all fees automatically drafted from your business bank account or automatically debited or charged to your business bank account. You will be required to sign an ACH Authorization Form (Franchise Agreement, Exhibit 7) permitting us to electronically debit your designated bank account for payment of all fees payable to us and/or our affiliates. You must deposit the Gross Sales of your Shop into the designated bank accounts that are subject to our ACH authorization. You must install and use, at your expense, the pre-authorized payment, point of sale, credit card processing, automatic payment, automated banking, electronic debit and/or electronic funds transfer systems that we designate and require in the operation of your Shop. You must pay all service charges and fees charged to you by your bank so that we may electronically debit your bank account.
Source: Item 6 — OTHER FEES (FDD pages 13–17)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, the fees outlined in Item 6, including those listed in the tables, are generally not refundable. Specifically, Note 1 in Item 6 states that all fees are uniformly imposed for all franchises, are recurring, and are not refundable unless otherwise specified. This means that franchisees should not expect to receive a refund for any of the fees they pay to Bang Cookies, its affiliates, or third parties, unless a specific exception is explicitly stated.
This non-refundable policy applies to various fees, such as the POS Fee of currently $165 per month, the Self-Serve Kiosk Fee of $279 per month (or $199 per month per kiosk for two or more), and other fees related to non-compliance, audits, collections, and supplier reviews. Additionally, fees like the $15,000 transfer fee and the $10,000 renewal fee are also non-refundable. The royalty fee, which is a continuing weekly fee equal to 6% of weekly Gross Sales, and the Brand Development Fund Fee, which can be up to 2% of weekly Gross Sales, are also non-refundable.
Given this policy, prospective Bang Cookies franchisees should carefully consider their financial situation and ensure they can comfortably afford all required fees. It is crucial to review the Franchise Agreement and related exhibits to fully understand the fee structure and payment terms. Franchisees should also be aware of the conditions under which certain fees are imposed, such as non-compliance penalties or audit costs resulting from underreporting of sales. Understanding these financial obligations is essential for making an informed decision about investing in a Bang Cookies franchise.