What is the total estimated initial investment for a Chocolate Fish Coffee Multi-Unit Development Agreement?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
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| Type of expenditure | Amount | Method of payment | When due | To whom payment is to be made |
|---|---|---|---|---|
| Additional initial franchise fees (see Note 6) | $22,500 - $90,000 | Check or wire transfer | Upon signing the MUDA | Us |
| Business planning and miscellaneous expenses | $1,000 - $5,000 | Check | As incurred | Vendors and suppliers |
| Total | $267,700 - $530,700 | This is the total estimated initial investment to enter into a Multi-Unit Development Agreement for the right to own a total of 2 o |
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 estimated initial investment for a Multi-Unit Development Agreement (MUDA) ranges from $267,700 to $530,700. This investment covers the right to own a total of 2 to 5 Chocolate Fish Coffee locations.
The initial investment includes additional franchise fees that range from $22,500 to $90,000, payable upon signing the MUDA via check or wire transfer directly to Chocolate Fish Coffee. These fees cover the second and subsequent franchises under the agreement, as the initial franchise fee for the first unit is accounted for separately under the standard Franchise Agreement terms.
In addition to the franchise fees, the initial investment also encompasses business planning and miscellaneous expenses, estimated between $1,000 and $5,000. These expenses are paid to various vendors and suppliers as they are incurred. The total estimated initial investment represents the complete financial commitment required to enter into a Multi-Unit Development Agreement with Chocolate Fish Coffee, allowing the franchisee to develop multiple locations within a specified territory.