What is the assignment fee for each Central Bark Doggy Day Care Franchise Agreement not yet signed?
Central_Bark_Doggy_Day_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
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4.1 Multi-Unit Rights Fee
In addition to paying the Initial Franchise Fee (defined below) due under the first Franchise Agreement we enter into pursuant to this Agreement, concurrently with the execution of this Agreement, you must pay to us the Multi-unit Rights Fee. "Multi-unit Rights Fee" means the sum of Five Thousand Dollars ($5,000.00) for each Central Bark Facility to be opened and operated by you pursuant to the Development Obligation, less the first Central Bark Facility for which you and we sign a Franchise Agreement concurrently herewith. We will apply the Multi-unit Rights Fee as a credit against the Initial Franchise Fee due under each Franchise Agreement (subsequent to the first Franchise Agreement) which you or your approved Affiliate(s) execute pursuant to this Agreement in increments of $5,000. The Multiunit Rights Fee is fully earned by us when you and
Source: Item 1 — Franchisee shall have paid all Royalty Fees, advertising fund contributions, LAC contributions, amounts owed for purchases by Franchisee from Franchisor, or Franchisor's affiliates, and all other amounts owed to Franchisor, Franchisor's affiliates, and third-party creditors, and shall have submitted to Franchisor all required reports and statements; (FDD pages 106–233)
What This Means (2025 FDD)
According to Central Bark Doggy Day Care's 2025 Franchise Disclosure Document, multi-unit franchisees are required to pay a Multi-unit Rights Fee in addition to the Initial Franchise Fee. The Multi-unit Rights Fee is $5,000 for each Central Bark Facility to be opened, excluding the first facility. This fee is paid concurrently with the execution of the Multi-Unit Agreement.
The franchisor applies the Multi-unit Rights Fee as a credit against the Initial Franchise Fee due under each subsequent Franchise Agreement. This credit is applied in $5,000 increments. The document specifies that the Multi-unit Rights Fee is fully earned by the franchisor upon signing the agreement and is nonrefundable.
For a prospective Central Bark Doggy Day Care multi-unit franchisee, this means an initial investment of $5,000 per location (beyond the first) is required upfront. This fee is then credited back against the initial franchise fee for each subsequent location. While this lessens the financial burden of the initial franchise fee, it is important to note that the Multi-unit Rights Fee is nonrefundable, regardless of whether all locations are eventually opened.