What is the renewal fee for a Casa De Corazon franchise agreement?
Casa_De_Corazon Franchise · 2025 FDDAnswer from 2025 FDD Document
perated under the Casa de Corazon® service mark and logo.
Basis of presentation
The accompanying financial statements are presented in accordance 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 the 2025 FDD, Casa De Corazon's franchise agreement has an initial term of 10 years. If a franchisee meets certain conditions and the company approves, the franchisee can renew the agreement by paying a renewal fee of $7,500.
It is important to note that renewal is not automatic. Casa De Corazon must approve the renewal, and the franchisee must meet specific conditions that are not detailed in this excerpt. This means a franchisee should maintain a good relationship with Casa De Corazon and adhere to all franchise agreement terms to increase the likelihood of approval.
Franchise agreements typically include renewal options, but the fees and conditions can vary widely. The $7,500 renewal fee for Casa De Corazon may be considered relatively low compared to the initial franchise fee of $70,000, but the unspecified 'certain conditions' could introduce additional costs or requirements.