What is the amount of the Management Fee for a Casa De Corazon franchise?
Casa_De_Corazon Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount (Note 1) | Due Date | Remarks |
|---|---|---|---|
| Management Fee | 5% of Gross Revenues, plus reimbursement of our out-of- pocket expenses. | Upon demand | Only payable if we notify you of our intent to exercise our purchase option under the Franchise Agreement. |
| Type of Fee | Amount (Note 1) | Due Date | Remarks |
| Management Fee | 5% of Gross Revenues, plus reimbursement of our out-of pocket expenses. | Upon demand | Only payable if we notify you of our intent to exercise our purchase option under the Franchise Agreement. |
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2025 FDD)
According to Casa De Corazon's 2025 Franchise Disclosure Document, the Management Fee is 5% of Gross Revenues, plus reimbursement of out-of-pocket expenses. This fee is not a standard, ongoing fee. Instead, it is only payable if Casa De Corazon notifies the franchisee of their intent to exercise their purchase option under the Franchise Agreement.
This means that a Casa De Corazon franchisee will only be required to pay this management fee if the franchisor decides to buy back the franchise. The fee covers Casa De Corazon's expenses and a portion of the revenue generated by the center during the period they are managing it prior to purchase.
It is important for prospective franchisees to understand the conditions under which this fee is applied, as it directly impacts the financial implications of Casa De Corazon exercising its purchase option. Franchisees should clarify with Casa De Corazon the specific circumstances and procedures related to the purchase option and how the management fee is calculated in practice, especially regarding what constitutes 'out-of-pocket expenses'.