Is the deposit paid for the GRM or GRT for a Beverly Anns Cookie franchise refundable?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
M or GRT
You must purchase either one GRM or one GRT from us. You will be required to pay the thencurrent GRM/GRT price at the time you take delivery. As of the Issuance Date of this Franchise Disclosure Document, the current GRM price is between $137,451 and $144,451 and the current GRT price is between $85,753 and $89,753. You will pay a nonrefundable $5,000 deposit when you sign the Franchise Agreement and the remaining balance of $132,451 and $139,451 when you take delivery of your GRM or the remaining balance of $80,753 and $84,753 when you take delivery of your GRT.
You must also pay for any required modifications that government agencies require and that are not standard on the GRM/GRT. GRM and GRT payments are nonrefundable even if you do not open a Beverly Ann's Cookie Franchise. The GRM and the GRT will come equipped with a custom-built freezer, a heated holding and proofing cabinet, and a proprietary storage cabinet. Franchisees are required to operate at least one GRM/GRT, and may operate multiple units, in their Protected Territory.
You are responsible for picking up your GRM/GRT from the Kona Ice Corporate Office located in Florence, KY after initial training, or you may choose to have your GRM/GRT delivered. GRMs and GRTs are delivered from Florence, Kentucky. If you choose delivery, you will pay the delivery fee directly to the transportation company based on the then-current delivery rate.
GRM/GRT Compliance Fee
You are required to pay for any modification required for your GRM/GRT in order to comply with relevant state or local health department requirements in your Protected Territory. These modifications usually cost between $0 and $7,000. These payments are paid when you purchase the GRM/GRT and are nonre
Source: Item 5 — INITIAL FEES (FDD pages 13–15)
What This Means (2025 FDD)
According to Beverly Anns Cookie's 2025 Franchise Disclosure Document, a $5,000 deposit is required when signing the Franchise Agreement for either a GRM (mobile unit) or GRT (trailer unit). This deposit is nonrefundable. The total current price for the GRM ranges from $137,451 to $144,451, while the GRT costs between $85,753 and $89,753, as of the issuance date of the FDD. The remaining balance for the GRM ($132,451 to $139,451) or GRT ($80,753 to $84,753) is due upon delivery.
This nonrefundable deposit means that if a franchisee changes their mind or is unable to proceed with opening their Beverly Anns Cookie franchise after signing the agreement, they will forfeit the $5,000 deposit. This is a common practice in franchising, as the franchisor incurs costs in preparing for the new franchise location. It is important for prospective franchisees to carefully consider their financial situation and business plans before signing the Franchise Agreement and paying the deposit.
Additionally, any payments for required modifications to the GRM/GRT to comply with local health department requirements are also nonrefundable. These modifications typically range from $0 to $7,000. The GRM and GRT come equipped with specific features like a custom-built freezer, heated holding and proofing cabinet, and a proprietary storage cabinet. Franchisees must operate at least one GRM/GRT in their protected territory and are responsible for picking it up from the Kona Ice Corporate Office in Florence, KY, or paying for delivery.
Given the nonrefundable nature of these initial payments, prospective Beverly Anns Cookie franchisees should conduct thorough due diligence and seek professional advice before committing to the franchise. Understanding the full financial obligations and potential risks is crucial for making an informed decision.