When is the Technology Implementation Fee due for a Bang Cookies bakery location?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Expenditure | Amount | Method of Payment | When Due | |
|---|---|---|---|---|
| Initial Franchise Fee (Note 1) | $55,000 | Lump sum | When Franchise Agreement is signed | Us |
| Construction and Leasehold Improvements (Note 2) | $75,000 – $150,000 | As arranged | As incurred | Contractors, suppliers, and/or Landlord |
| Lease Deposits – Three Months | $15,000 – $40,000 | As arranged | As incurred | Landlord |
| (Note 3) | ||||
| Furniture, Fixtures and Equipment | $176,370 – $224,020 | As arranged | As incurred | Suppliers |
| (Note 4) | ||||
| Signage (Note 5) | $15,000 – $25,000 | As arranged | As incurred | Us, Suppliers |
| Computer, Software and Point of | $3,000 – $3,000 | As arranged | As incurred | Suppliers |
| Sales System (Note 6) | ||||
| Grand Opening Marketing (Note 7) | $10,000 – $20,000 | As arranged | As incurred | Suppliers |
| Initial Inventory (Note 8) | $5,000 – $10,000 | As arranged | As incurred | Us, Suppliers |
| Utility Deposits (Note 9) | $1,500 – $2,000 | As arranged | As incurred | Suppliers |
| Insurance Deposits – Three | $500 – $1,000 | As arranged | As incurred | Insurers |
| Months (Note 10) | ||||
| Travel for Initial Training | $3,500 – $7,500 | As arranged | As incurred | Airlines, hotels, |
| (Note 11) | restaurants | |||
| Professional Fees (Note 12) | $2,000 – $7,500 | As arranged | As incurred | Attorneys, accountants, architects, advisors |
| Technology Implementation Fee | $1,500 - $3,000 | As arranged | As incurred | Us |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 17–24)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, the Technology Implementation Fee, which ranges from $1,500 to $3,000, is due 'as incurred'. This means the fee is payable at the time the expense is incurred, rather than as a lump sum upfront. The payment method is 'as arranged,' suggesting flexibility in how the franchisee can remit the payment. The payment is made to Bang Cookies.
For a prospective Bang Cookies franchisee, this means that the Technology Implementation Fee will be paid over time as the technology is implemented in their bakery location. This could be tied to specific milestones in the setup process, such as software installation or hardware configuration. The franchisee should clarify with Bang Cookies the specific schedule and milestones associated with the technology implementation to budget accordingly.
Understanding the 'as incurred' payment schedule is crucial for managing the initial investment costs. Unlike a fixed lump sum, this arrangement allows for spreading out the expense, potentially easing the financial burden during the initial setup phase. However, franchisees should ensure they have sufficient cash flow to cover these costs as they arise to avoid any delays in the implementation process.