To whom is the Chocolate Bash franchise fee paid?
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 initial franchise fee is paid directly to Chocolate Bash. The franchise fee ranges from $45,000 to $45,000. The method of payment is either by check or wire transfer, and it is due upon signing the franchise agreement.
For those franchisees who sign a Multi-Unit Development Agreement (MUDA) for multiple Chocolate Bash locations, additional initial franchise fees ranging from $70,000 to $140,000 are also paid to Chocolate Bash. These fees are also paid via check or wire transfer upon signing the MUDA.
Understanding where your money goes is an important part of deciding to invest in a franchise. Besides the franchise fee, prospective Chocolate Bash franchisees should also note that other initial investment costs are paid to different entities, such as landlords, utility providers, contractors, vendors, suppliers, insurance companies, government entities, and professional service firms.