When are franchise and development fees paid to Bang Cookies?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
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
or other agreement with Franchisor, the Development Shop Initial Franchise Fee for each additional Development Shop (over and above the First Development Shop), is: $0 (Waived), payable at the time of signing the Franchise Agreement for each Development Shop.
4.1 DEVELOPMENT AREA FEE
In exchange for the rights set forth and granted pursuant to the terms of this Agreement, upon execution of this Agreement, Franchisee shall pay to Franchisor a development area fee (the "Development Area Fee"). The Development Area Fee is not refundable.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, the timing of franchise and development fee payments depends on whether it is for the first development shop or subsequent shops. The Development Area Fee is paid upon the execution of the Multi-Unit Development Agreement and is non-refundable.
For the first Bang Cookies development shop, the initial franchise fee is $35,000, which is payable upon the execution of the applicable Franchise Agreement. For each additional development shop beyond the first, the initial franchise fee is waived ($0) and is payable at the time of signing the Franchise Agreement for each development shop.
Prospective franchisees should note that failure to meet development obligations under the Development Schedule, including establishing and opening the required number of Bang Cookies shops, can result in the termination of the agreement by Bang Cookies. Additionally, franchisees are obligated to pay royalty and other fees as outlined in each respective Franchise Agreement.