What is the definition of the 'Multi-unit Rights Fee' for a Central Bark Doggy Day Care franchise?
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, the Multi-unit Rights Fee is defined as the fee a franchisee pays for the right to open and operate multiple Central Bark Doggy Day Care facilities within a specific territory. This fee is paid in addition to the initial franchise fee for the first location.
The Multi-unit Rights Fee is calculated as $5,000 for each Central Bark Doggy Day Care facility the franchisee is obligated to open under the development agreement, 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 in $5,000 increments.
For a prospective Central Bark Doggy Day Care multi-unit franchisee, this means an upfront investment beyond the initial franchise fee for the first location. This fee secures the rights to develop multiple locations. The fee is nonrefundable once the agreement is signed, but it is later credited towards the initial franchise fees of subsequent locations, reducing the overall cost of expansion. This structure incentivizes multi-unit development while providing Central Bark Doggy Day Care with capital to support the franchisee's growth.