What are the components of Casa De Corazon's franchise revenue?
Casa_De_Corazon Franchise · 2025 FDDAnswer from 2025 FDD Document
cordance with accounting principles generally accepted in the United States of America (U.S. GAAP) as codified by the Financial Accounting Standards Board.
Franchising
The Company executes franchise agreements that set the terms of its arrangement with each franchisee. The agreements cover a ten-year period. The franchise agreements require the franchisee to pay an initial, nonrefundable fee of $70,000. Each franchisee is required to pay a monthly royalty fee of 7% of monthly gross revenue. Each franchisee is also required to pay a monthly brand fund fee of 2% of monthly gross revenue and a monthly technology fee of $500. The monthly roy
Source: Item 23 — RECEIPTS (FDD pages 51–215)
What This Means (2025 FDD)
According to Casa De Corazon's 2025 Franchise Disclosure Document, the company's revenue is derived from several franchise fees. The initial franchise fee is $70,000, which is nonrefundable. In addition to this upfront fee, Casa De Corazon franchisees must pay ongoing monthly fees.
The ongoing monthly fees include a royalty fee of 7% of monthly gross revenue. Franchisees also pay a monthly brand fund fee, which is 2% of monthly gross revenue. There is also a monthly technology fee of $500. These recurring fees are typical in the franchise industry and are used to support the Casa De Corazon brand, provide ongoing support to franchisees, and invest in technology.
Finally, Casa De Corazon also collects a renewal fee of $7,500 if a franchisee chooses to renew their agreement after the initial ten-year term, subject to approval and certain conditions. These multiple revenue streams are how Casa De Corazon generates income from its franchise operations.