When is the Chocolate Bash franchise fee due?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
ISE AGREEMENT
| Type of expenditure | Amount | Method of payment | When due | To whom payment is to be made | |
|---|---|---|---|---|---|
| Franchise fee (see Note 1) | $45,000 - | $45,000 | Check or wire transfer | Upon signing the franchise agreement | Us |
| Rent and Lease Security | $2,500 - | $16,000 | Check | Upon signing lease | Landlord |
| Deposit (see Note 2) | |||||
| Utilities | $100 - | $500 | Check, |
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 franchise fee, which ranges from $45,000 to $45,000, is due upon signing the franchise agreement. Payment can be made via check or wire transfer directly to Chocolate Bash. This fee is part of the initial investment required to start a Chocolate Bash franchise.
For franchisees interested in a Multi-Unit Development Agreement (MUDA), which covers 2-4 additional units, the initial franchise fees are reduced to $35,000 for the second and subsequent franchises. These fees are paid upon signing the MUDA. This represents a significant investment for franchisees looking to expand rapidly with multiple Chocolate Bash locations.
Understanding when these fees are due is crucial for financial planning. Prospective franchisees should ensure they have the necessary funds available at the time of signing the franchise agreement or MUDA. It's also important to note that these fees, like most other initial investment expenditures, are non-refundable, as stated in the FDD.