When is the initial franchise fee due for a Chocolate Fish Coffee franchise?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
CHISE AGREEMENT
| Type of expenditure | Amount | Method of payment | When due | To whom payment is to be made |
|---|---|---|---|---|
| Initial franchise fee (see Note 1) | $30,000 - $30,0 | Check or wire transfer | Upon signing the franchise agreement | Us |
| Rent and Lease Security | $3,000 - $16,2 | 200 Check | Upon signing lease | Landlord |
| Deposit (see Note 2) | ||||
| Utilities | $500 - $1,0 | Check, debi |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 13–16)
What This Means (2024 FDD)
According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, the initial franchise fee, ranging from $30,000 to $30,000, is due upon signing the franchise agreement. This fee is paid directly to Chocolate Fish Coffee via check or wire transfer.
For those interested in a Multi-Unit Development Agreement (MUDA), which allows for the development of two to five franchises, the terms differ slightly. The franchise fee for the first unit is included in the "Estimated Initial Investment – Franchise Agreement" table. However, for the second and each additional franchise under the MUDA, the initial franchise fee is reduced to $22,500 per franchise. These fees are also paid to Chocolate Fish Coffee via check or wire transfer.
It is important to note that all franchise fees under the MUDA are due upon signing the Multi-Unit Development Agreement. This means that a franchisee committing to multiple units will need to have the capital available to cover these fees upfront. This is a common practice in franchising, as it secures the franchisee's commitment to developing the agreed-upon number of locations.