When must the franchisee pay the initial fee to Cost Cutters Family Hair Salon?
Cost_Cutters_Family_Hair_Salon Franchise · 2024 FDDAnswer from 2024 FDD Document
this Article 2.2 shall automatically terminate. The FRANCHISEE acknowledges that circumstances and judgments may change and that if the FRANCHISEE'S rights under this Article 2.2 have terminated as provided above, then such rights will not be revived in the event COST CUTTERS later determines that the Franchised Area may be further developed.
ARTICLE 3 DEVELOPMENT FEE; INITIAL FEES; DEVELOPMENT SCHEDULE
| This document was downloaded from franchimp.com. All the information on this website is published in good faith an | 9 | 0 1 / 2 0 2 4 | |---|---|---| | | d f or general information purpose only. FranChimp.com does not make any warranti | es ab o u t th e co mpleteness, reliability, and | | accuracy of this information. Any action you take upon the information you find on this website (FranChimp.com), is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of our website. | | |
- 3.3 PAYMENT OF INITIAL FEES. The FRANCHISEE must pay COST CUTTERS the Initial Fee set forth in Article 3.2 of this Agreement on or before the date the FRANCHISEE executes the thencurrent standard Franchise Agreement for each Cost Cutters Business required to be owned and operated in the Franchised Area pursuant to this Agreement.
Source: Item 23 — RECEIPT (FDD pages 76–439)
What This Means (2024 FDD)
According to the 2024 Cost Cutters Family Hair Salon Franchise Disclosure Document, the franchisee must pay the initial fee on or before the date they execute the Franchise Agreement. The Franchise Agreement must be executed at least ten days before the franchisee commences initial business operations. This means a prospective franchisee needs to have the initial fee ready when signing the agreement, which must occur more than a week before opening their Cost Cutters Family Hair Salon location.
However, there is an addendum for franchises sold in Minnesota. For franchisees in Minnesota, Cost Cutters Family Hair Salon defers payment of the Initial Franchise Fee until the store opens for business. Upon the store's opening, the franchisee is required to pay the initial franchise fee.
Additionally, Cost Cutters Family Hair Salon will defer payment of the Development Fee and Initial Fees until the first Cost Cutters Business that FRANCHISEE develops under this Agreement opens for business. Upon the opening of the first Business, FRANCHISEE shall pay COST CUTTERS the Development Fee and Initial Fees.