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Under what conditions does Bang Cookies offer discounts on the initial franchise fee?

Bang_Cookies Franchise · 2024 FDD

Answer from 2024 FDD Document

Franchise Agreement

When you sign a Franchise Agreement you will pay to us a non-refundable initial franchise fee in the amount of $55,000 (the "Initial Franchise Fee"). The Initial Franchise Fee is fully earned by us upon payment. The method we use to calculate the Initial Franchise Fee is uniform for all franchises that we offer through this Disclosure Document, except, as described below, we offer a veteran's discount and multiterritory discount.

Veteran's Discount

For qualified individuals who were honorably discharged from any branch of the United States Military the Initial Franchise Fee for the first / initial Operating Territory franchise is discounted by 10%. This discount must be requested at the time of your initial franchise application and requires documented military service.

Opening Inventory

You must purchase your opening inventory of certain System Supplies from us or our affiliate. We estimate that your initial opening inventory of System Supplies that you must purchase from us or our affiliates will range between $18,000 to $40,000. Your initial opening inventory fees will be fully earned by us upon payment and are non-refundable.

Multi-Unit Development Agreement

If you sign a Multi-Unit Development Agreement, you must pay a fixed non-refundable development area fee of $35,000 for each Shop (the "Development Area Fee"), over and above the first Shop authorized by the Franchise Agreement, that you will be authorized to develop under the Multi-Unit Development

Agreement. The minimum number of Shops that you may agree to develop is three and the maximum is five.

Source: Item 5 — INITIAL FEES (FDD pages 11–13)

What This Means (2024 FDD)

According to Bang Cookies' 2024 Franchise Disclosure Document, there are two specific conditions under which the initial franchise fee may be discounted: for qualified veterans and for multi-unit development agreements.

For honorably discharged veterans from any branch of the United States Military, Bang Cookies offers a 10% discount on the initial franchise fee for the first operating territory franchise. To qualify, the veteran must request this discount at the time of their initial franchise application and provide documented military service. Since the standard initial franchise fee is $55,000, a qualified veteran would pay $49,500 for their first franchise.

Bang Cookies also offers a discount under a Multi-Unit Development Agreement. The initial franchise fee for the first development shop is $35,000. For each additional development shop beyond the first, the initial franchise fee is waived entirely, meaning it is reduced to $0. However, this discount is contingent on the franchisee remaining in compliance with the terms of the Multi-Unit Development Agreement, including adhering to the Development Schedule and not being in default of any other Franchise Agreements.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.