When are the additional initial franchise fees due for a Chocolate Bash franchise?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
ENT AGREEMENT
| Type of expenditure | Amount | Method of payment | When due | To whom payment is to be made |
|---|---|---|---|---|
| First franchise (see table above) | $198,400 - $380,000 | Varies | Varies | Varies |
| Additional initial franchise fees (2-4 Units) (see Note 4) | $70,000 - $140,000 | Check or wire transfer | Upon signing the MUDA | Us |
| Business planning and miscellaneous expenses | $1,000 - $5,000 | Check | As incurred | Vendors and suppliers |
| Total (see Note 5) | $269,400 - $525,000 |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 13–15)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, the additional initial franchise fees for franchisees purchasing 2-4 units under a Multi-Unit Development Agreement (MUDA) are due upon signing the MUDA. These fees range from $70,000 to $140,000 and must be paid via check or wire transfer to Chocolate Bash.
This means that if a prospective franchisee commits to developing multiple Chocolate Bash locations, they must pay the additional franchise fees upfront when they sign the agreement, rather than when each individual franchise location opens. This represents a significant initial investment and financial commitment on the franchisee's part.
It is important for prospective franchisees to carefully consider their financial capacity and development plans before entering into a Multi-Unit Development Agreement with Chocolate Bash, as these fees are non-refundable. Franchisees should also be aware that this estimate assumes the franchisee signs a Multi-Unit Development Agreement for three to five franchises, and the franchise fee for the first unit is counted in the "Estimated Initial Investment-Franchise Agreement" table.