Is the Development Fee refundable for an Area Development Agreement with Beyond Juicery Eatery?
Beyond_Juicery_Eatery Franchise · 2025 FDDAnswer from 2025 FDD Document
limited to five (5) Restaurants. If
your development schedule includes more than five (5) Restaurants, you will pay a Development Fee of $20,000 for each Restaurant that you agree to develop over five (5). You must pay the Development Fee in full when you sign the Area Development Agreement. Except for the discount described above, the Development Fee is uniform, payable for the reservation of future development rights in the Development Territory, and is not refundable under any circumstances. You will sign a separate franchise agreement in our then-current form, the terms and conditions of which may be materially different than the franchise agreement attached as Exhibit A, for each Restaurant opened according to the Development Schedule and pay the nonrefundable then-current Initial Franchise Fee. We will credit $20,000 (or $10,000 if you received the veteran discount) against the then-current Initial Franchise Fee for each Restaurant you develop. You will pay the then-current Initial Franchise Fee each time you execute a Franchise Agreement. We will grant additional franchises under the Area Development Agreement according to the terms o
Source: Item 5 — INITIAL FEES (FDD pages 15–16)
What This Means (2025 FDD)
According to Beyond Juicery Eatery's 2025 Franchise Disclosure Document, the Development Fee associated with an Area Development Agreement is generally not refundable. If a prospective franchisee signs an Area Development Agreement, they must develop a pre-determined number of Beyond Juicery Eatery restaurants within a specific territory and timeframe, as outlined in the Development Schedule.
The Development Fee is $20,000 for each restaurant the franchisee agrees to develop over five restaurants. This fee compensates Beyond Juicery Eatery for reserving the future development rights within the designated territory. The FDD explicitly states that this Development Fee is "not refundable under any circumstances." This means that regardless of whether the franchisee successfully opens all the agreed-upon restaurants or if circumstances change, the Development Fee will not be returned.
However, Beyond Juicery Eatery provides a credit against the initial franchise fee for each restaurant developed under the Area Development Agreement. Specifically, they will credit $20,000 (or $10,000 if the franchisee qualified for the veteran discount) against the then-current Initial Franchise Fee for each restaurant developed. This credit helps to offset the initial Development Fee, but it's important to note that the initial franchise fee itself is also non-refundable.