What methods of payment are acceptable for the Chocolate Bash franchise fee?
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, debit, and/or credit | Upon ordering service | Utility providers |
| Leasehold | $50,000 - | $100,000 | Check | As incurred or when billed | Contract |
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 acceptable methods of payment for the initial franchise fee are either check or wire transfer. This fee, which ranges from $45,000 to $45,000, is due upon signing the franchise agreement and is paid directly to Chocolate Bash. For additional initial franchise fees associated with a Multi-Unit Development Agreement (MUDA), which range from $70,000 to $140,000 for 2-4 units, the payment method is also check or wire transfer, due upon signing the MUDA and payable to Chocolate Bash.
It is important to note that the method of payment can vary for other expenses within the estimated initial investment. For instance, rent and lease security deposits are paid via check, while utilities, market introduction programs, furniture, fixtures, equipment, computer systems, signage, office expenses, inventory, and professional fees can be paid via check, debit, and/or credit. Travel, lodging, and meals for initial training can be paid via cash, debit, or credit.
Prospective franchisees should be aware of these payment methods to ensure they are prepared to meet the financial obligations when they are due. Understanding the various payment options for different expenditures can help in budgeting and managing the initial investment effectively. Franchisees should also confirm these payment methods with Chocolate Bash during their due diligence, as policies can change.