When are all franchise fees paid upon signing a Multi-Unit Development Agreement with Chocolate Bash?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
the industry.
- This estimate assumes you sign a Multi-Unit Development Agreement for three to five franchises. The franchise fee for your first unit is counted in the "Estimated Initial Investment
- Franchise Agreement" table. Your initial franchise fees are reduced to $35,000 for the Second and subsequent franchises purchased. You will pay all franchise fees upon signing the MUDA.
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- These figures are estimates, and we cannot guarantee that you will not have additional, or higher, expenses. You should review these figures carefully with a business advisor before making any decision to purchase a franchise.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 13–15)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, when signing a Multi-Unit Development Agreement (MUDA), you will pay all franchise fees at the time of signing the agreement. Note 4 in Item 7 states that the initial franchise fees are reduced to $35,000 for the second and subsequent franchises purchased under the MUDA.
For a Multi-Unit Development Agreement, the table in Item 7 shows 'Additional initial franchise fees (2-4 Units)' ranging from $70,000 to $140,000 are due 'Upon signing the MUDA'. These fees are paid to Chocolate Bash via check or wire transfer.
This means that a prospective franchisee needs to have the full amount of the franchise fees available when they sign the Multi-Unit Development Agreement to secure the rights to develop multiple Chocolate Bash locations. This is a significant upfront investment that franchisees should be prepared for.