Clozetivity 2024 Franchise FAQ - FDD Ninja

Question 1

Does Clozetivity require prior written consent for transfers related to the franchise agreement due to intestate succession?

Accepted Answer

- (3) Without limitation to the foregoing, any Transfer by Franchisee respecting and/or relating to this Agreement and/or the Franchised Business and/or assets associated with the Franchised Business will require the prior written consent of Franchisor where such Transfer occurs by virtue of: (a) divorce or legal dissolution of marriage; (b) insolvency; (c) dissolution of a Corporate Entity; (d) last will and testament; (e) intestate succession; or (f) declaration of, or transfer in trust;

Source: Item 23 — RECEIPTS (FDD pages 51–208)

Question 2

What is the estimated range for equipment costs for a Clozetivity franchise?

Accepted Answer

e Requirement is determined in accordance with the following schedule:

| Type of E | Amount | Method of Payment | When Due | To Whom Payment is Made |
|---|---|---|---|---|
|  |  |  |  |  |
|  |  |  |  |  |
| Initial Franchise Fee | $39,000 | Lump sum | W

Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 21–24)

Question 3

What is the initial franchise fee for a Clozetivity franchise?

Accepted Answer

| Type of E | Amount | Method of Payment | When Due | To Whom Payment is Made |
|---|---|---|---|---|
|  |  |  |  |  |
|  |  |  |  |  |
| Initial Franchise Fee | $39,000 | Lump sum | When Franchise | Us |
| (Note 1) |  |  | Agreement is signed |  |
| Construction and Leasehold Improvements (Note 2) | $2,500 – $5,500 | As arranged | As incurred | Contractors, suppliers, and/or Landlord |
| Equipment | $8,000 – $17,500 | As arranged | As incurred | Suppliers |
| (Note 3) |  |  |  |  |
| Initial Inventory | $3,000 | As arranged | As incurred | Suppliers |
| (Note 4) |  |  |  |  |
| Computer, Software | $1,500 – $2,500 | As arranged | As incurred | Suppliers |
| and Point of Sales |  |  |  |  |
| System (Note 5) |  |  |  |  |
| Service Vehicle | $4,500 – $45,000 | As arranged | As incurred | Automobile dealers |
| (Note 6) |  |  |  |  |
| Start-Up Marketing – | $5,500 | As arranged | As incurred | Us, Suppliers |
| Three Months (Note 7) |  |  |  |  |
| Insurance Deposits – | $1,000 – $4,500 | As arranged | As incurred | Insurers |
| Three Months (Note 8) |  |  |  |  |
| Travel for Initial | $500 – $2,000 | As arranged | As incurred | Airlines, hotels, restaurants |
| Training (Note 9) |  |  |  |  |
| Professional Fees | $500 – $1,500 | As arranged | As incurred | Attorneys, accountants, |
| (Note 10) |  |  |  | advisors |
| Licenses and Permits | $500 – $1,500 | As arranged | As incurred | Government |
| (Note 11) |  |  |  |  |
| Additional Funds – Three Months (Note 12) | $15,000 – $30,000 | As arranged | As incurred | Us, employees, suppliers, landlord, utility suppliers |
| Total Estimate (Note 13) | $81,500 – $157,500 |  |  |  |

Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 21–24)

Question 4

To whom is the initial franchise fee paid for a Clozetivity franchise?

Accepted Answer

| Type of E | Amount | Method of Payment | When Due | To Whom Payment is Made |
|---|---|---|---|---|
|  |  |  |  |  |
|  |  |  |  |  |
| Initial Franchise Fee | $39,000 | Lump sum | When Franchise | Us |
| (Note 1) |  |  | Agreement is signed |  |

Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 21–24)

Clozetivity 2024 FDD FAQ