What is the amount of the initial franchise fee for a Beverly Anns Cookie franchise?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
hise Fee
You must pay us an initial franchise fee ("Initial Franchise Fee") of $15,000 when you sign the Franchise Agreement or you may choose to defer the Initial Franchise Fee for three years. If you choose the deferral, the Initial Franchise Fee will be due in full three years after you sign the Franchise Agreement. The Initial Franchise Fee is payment for all of our pre-opening assistance that we provide to allow you to open your Beverly Ann's Business and also offsets some of our franchisee recruitment expenses. Each Franchise Agreement will grant you the right to operate one GRM or GRT and Additional Equipment (if offered) in the Protected Territory. If you desire to operate more than one GRM or GRT, you will be required to purchase an additional Beverly Ann's Cookie Franchise for each GRM or GRT. The Initial Franchise Fee is due in full at the time you sign the Franchise Agreement(s), uniform, non-refundable, and deemed fully earned by us once paid. During our last fiscal year, ended December 31, 2024, we did not collect any Initial Franchise Fees.
Additional Franchise Reservation Fee
Franchisees may also reserve an additional Franchise and territory ("Reserved Franchise") subject to availability and our approval by paying a reservation fee of $10,000 per Reserved Franchise ("Reservation Fee") when you sign the "Additional Franchise Reservation Agreement" which is attached as Exhibit H-5 to this Franchise Disclosure Document. You will be able to reserve a territory for up to 12 months. We will also give you a right of first refusal for an additional 12 months if you do not purchase the Reserved Franchise within the initial 12-month period. You cannot renew the Additional Franchise Reservation Agreement if you do not purchase the Reserved Franchise. The Reservation Fee will be applied to the Initial Franchise Fee if you execute a new franchise agreement for an additional Beverly Ann's
Cookie Franchise.
Source: Item 5 — INITIAL FEES (FDD pages 13–15)
What This Means (2025 FDD)
According to Beverly Anns Cookie's 2025 Franchise Disclosure Document, the initial franchise fee is $15,000. This fee is payable when the Franchise Agreement is signed. However, Beverly Anns Cookie offers an option to defer this payment for three years, with the full fee due at the end of that period. This initial franchise fee compensates Beverly Anns Cookie for the pre-opening assistance provided to the franchisee and also covers some of the franchisor's recruitment expenses.
The initial franchise fee grants the franchisee the right to operate one GRM (presumably a mobile unit) or GRT (presumably a retail trailer) within a protected territory. If a franchisee wishes to operate more than one GRM or GRT, they must purchase an additional Beverly Anns Cookie franchise for each additional unit. The FDD states that the initial franchise fee is uniform, non-refundable, and considered fully earned by Beverly Anns Cookie once it is paid.
In addition to the initial franchise fee, franchisees have the option to reserve an additional franchise and territory by paying a reservation fee of $10,000. This reservation secures the territory for up to 12 months, with a right of first refusal for another 12 months if the franchise is not purchased within the initial period. If the franchisee proceeds with opening the additional Beverly Anns Cookie franchise, the $10,000 reservation fee is applied towards the initial franchise fee. However, the reservation fee is nonrefundable even if the franchisee does not open the additional franchise.