What is the condition for the estimate assuming a Multi-Unit Development Agreement for a Chocolate Fish Coffee franchise?

According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, the estimate for a Multi-Unit Development Agreement (MUDA) is based on the franchisee signing an agreement to develop two to five franchises. The franchise fee for the first unit is accounted for in the "Estimated Initial Investment – Franchise Agreement" table. For the second and each subsequent franchise, the initial franchise fees are reduced to $22,500. All franchise fees are due upon signing the MUDA.

This means that a prospective Chocolate Fish Coffee franchisee considering a Multi-Unit Development Agreement should be prepared to invest in developing multiple locations. The initial investment will be higher due to the commitment to open several units, but the franchise fees are reduced for each additional unit beyond the first. This structure incentivizes franchisees to expand the Chocolate Fish Coffee brand within their designated territory.

It's important to note that the total estimated initial investment to enter into a Multi-Unit Development Agreement for the right to own a total of 2 or 5 locations ranges from $267,700 to $530,700. This range includes additional initial franchise fees ranging from $22,500 to $90,000, depending on the number of units the franchisee commits to developing. Franchisees should carefully consider their financial capacity and development plans before entering into a MUDA with Chocolate Fish Coffee.