What is the estimated range for the initial investment for a Chocolate Bash Multi-Unit Development Agreement?
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 - $5 |
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 estimated initial investment for a Multi-Unit Development Agreement ranges from $269,400 to $525,000. This total includes several components, such as the first franchise fee, additional initial franchise fees for subsequent units (2-4 units), and business planning and miscellaneous expenses. The franchise fee for the first unit is detailed in another table, while the additional franchise fees for the 2nd through 4th units range from $70,000 to $140,000. Business planning and miscellaneous expenses are estimated to be between $1,000 and $5,000.
The initial franchise fees for the second and subsequent franchises are reduced to $35,000, and all franchise fees are due upon signing the Multi-Unit Development Agreement (MUDA). The document specifies that these figures are estimates, and actual expenses may vary. It is important to note that neither Chocolate Bash nor any affiliate provides financing for any part of the initial investment.
Prospective franchisees should carefully review these figures with a business advisor before making any decision to purchase a franchise. The estimate assumes the franchisee is signing a Multi-Unit Development Agreement for three to five franchises. These costs do not include the costs associated with opening each individual Chocolate Bash location, which are detailed in a separate table for a single Franchise Agreement.