Is the initial franchise fee for a Bang Cookies franchise refundable?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
SECTION 4 DEVELOPMENT AREA FEE, INITIAL FEES AND DEVELOPMENT SCHEDULE
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.
The amount of the Development Area Fee is set forth in the Development Information Sheet.
Franchisee agrees that the Development Area Fee is not a franchise fee and, that at the time of signing each respective Franchise Agreement, Franchisee shall pay to Franchisor an initial franchise fee and all other fees in accordance with the terms and conditions of each respective Franchise Agreement, except that the initial franchise fee shall conform to the amounts set forth in Section 4.2 of this Agreement. If the then current standard Franchise Agreement to be signed by the Franchisee respecting a Development Shop to be
Source: Item 5 — INITIAL FEES (FDD pages 11–13)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, the Development Area Fee is not refundable. The franchisee must pay Bang Cookies a Development Area Fee in exchange for the rights granted in the agreement. The amount of this fee is listed in the Development Information Sheet.
The FDD also states that the franchisee must pay Bang Cookies an initial franchise fee when signing each respective Franchise Agreement. The initial franchise fee will conform to the amounts set forth in Section 4.2 of the agreement.
It is important to note that this document includes an amendment for franchisees operating under North Dakota law. According to the amendment, refund and cancellation provisions do not apply to franchises operating under North Dakota Century Code Annotated Chapter 51-19, Sections 51-19-01 through 51-19-17. If Bang Cookies elects to cancel the Franchise Agreement, they will be entitled to a reasonable fee for their evaluation of the franchisee, related preparatory work performed, and expenses actually incurred.