What was the franchise development expense for Central Bark Doggy Day Care?
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 we sign this Agreement and is nonrefundable.
4.2 Initial Franchise Fees
The initial franchise fee for the first Central Bark Facility that you will develop pursuant to the Development Obligation will be Forty-Nine Thousand Dollars ($49,000); for each additional Central Bark Facility developed by you pursuant to the Development Obligation, you will pay a reduced initial franchise fee of Thirty-One Thousand Dollars ($31,000) (against which amount we will credit the Multi-unit Rights Fee in $5,000 increments) (collectively, the "Initial Franchise Fee"). The Initial Franchise Fee must be paid in full upon execution by you of each Franchise Ag
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, less the first Central Bark Facility. This fee is credited against the Initial Franchise Fee due under each subsequent Franchise Agreement in $5,000 increments. The Multi-unit Rights Fee is earned upon signing the agreement and is nonrefundable.
For the first Central Bark Facility, the initial franchise fee is $49,000. For each additional facility developed, the initial franchise fee is reduced to $31,000, with the Multi-unit Rights Fee credited in $5,000 increments. This means that while the initial franchise fee is lower for subsequent locations, the franchisee must still account for the Multi-unit Rights Fee as part of their overall development costs.
In practical terms, a franchisee planning to open multiple Central Bark Doggy Day Care locations needs to budget for both the initial franchise fees and the multi-unit rights fees. The multi-unit rights fee acts as a deposit towards future franchise fees but must be paid upfront, impacting the initial investment required. The nonrefundable nature of the Multi-unit Rights Fee means careful consideration of the development schedule and commitment is essential.