When is the initial franchise fee fully earned by Bang Cookies?

According to Bang Cookies' 2024 Franchise Disclosure Document, the initial franchise fee for the first development shop is $35,000, payable and due upon the execution of the applicable Franchise Agreement. For each additional development shop beyond the first, the initial franchise fee is $0 (waived), payable at the time of signing the Franchise Agreement for each Development Shop.

This means that Bang Cookies collects the $35,000 initial franchise fee when the franchisee signs the franchise agreement for their first development shop. For franchisees planning to open multiple locations, the initial fee is waived for subsequent shops, but this waiver is contingent on the franchisee remaining in compliance with the terms of their Multi-Unit Development Agreement.

Prospective franchisees should note that the initial franchise fee is due upon signing the agreement, meaning it is non-refundable once paid. Franchisees should carefully review the terms of the franchise agreement and development schedule to ensure they can meet the obligations before signing and paying the fee. This is a fairly standard practice in the franchise industry, as the initial fee compensates the franchisor for the initial costs of setting up the franchise and providing initial training and support.