Can the initial franchise fee for a Beverly Anns Cookie franchise be deferred, and if so, for how long?
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 Franch
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 of $15,000 can be deferred for a period of three years. If a franchisee chooses to defer this fee, the full amount becomes due three years after signing the Franchise Agreement. This initial fee covers Beverly Anns Cookie's pre-opening assistance provided to the franchisee, which enables them to start their Beverly Ann's Business, and also helps offset the franchisor's franchisee recruitment expenses.
This deferral option provides potential franchisees with increased financial flexibility at the outset of their business venture. Instead of paying the $15,000 upfront, they can allocate those funds to other initial costs such as the GRM/GRT purchase, initial inventory, or operational expenses. However, franchisees should be aware that the deferred fee will become due in full after three years, so they should plan accordingly to ensure they have sufficient funds available at that time.
It is important to note that the initial franchise fee is uniform and non-refundable once paid. The FDD also mentions that during the last fiscal year, which ended December 31, 2024, Beverly Anns Cookie did not collect any initial franchise fees. This could be an important point for prospective franchisees to discuss with the franchisor to understand the reasons behind this and whether it reflects any changes in their franchise sales strategy.