Does the $10,000 transfer fee apply to Crave Cookies franchises in the State of Washington?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty | 6% of your gross sales | Twice monthly, on the 1st and the 16th | See Note 1 and Note 2. |
| Marketing Fund Contribution | 2% of your gross sales maximum allowed by law, then the maximum allowed by law) | Twice monthly, on the 1st and the 16th | See Item 11 for a detailed discussion about these funds. Amounts due will be withdrawn by electronic wire transfer from your designated bank account. because of insufficient funds in your account. |
| Costs of collection | Our actual costs | As incurred | Payable if we incur costs (including reasonable attorney fees) in attempting to collect amounts you owe to us. |
| Special support fee | Our then-current fee (currently, $600 per day), plus our expenses. | On demand | If we provide in-person support to you in response to your request, we may charge this fee plus any out-of-pocket expenses (such as travel, lodging, and meals for employees providing onsite support). |
| Customer complaint resolution | Our expenses | We may take any action we deem appropriate to resolve a customer complaint about your business. If we respond to a customer complaint, we may require you to reimburse us for our expenses. | |
| Records audit | Our actual cost | On demand | Payable only if (1) we audit you because you have failed to submit required reports or other non-compliance, or (2) the audit concludes that you under-reported gross sales by more than 3% for any 4-week period. |
| Special inspection fee | Currently $600, plus our out-of-pocket costs | On demand | Payable only if we conduct an inspection of your business because of a governmental report, customer complaint or other customer feedback, or your default or non-compliance with any system specification. |
| System non-compliance fines and charges | Amount to be specified in the Crave Operations Manual. Currently ranges between $50 and $2,000. | As incurred | To be paid in accordance with our electronic funds transfer or automatic withdraw program. Payable upon demand if you fail to correct deficiencies or non-compliance with our system. |
| Non-compliance, violation and fees | Amounts range from $0 if infractions cured to maximum fines of $5000. | When notified | See Exhibit L for specific violations and cures. Exhibit L will also be included in the Franchise Agreement as Attachment 4. |
| Transfer fee | $10,000 plus any broker fees and other y more than 3% for any 4-week | When transfer occurs | Payable if you sell your business. |
| period | out-of-pocket costs we incur | The $10,000 fee does not apply in the State of Washington but we are still entitled to broker fees and other out-of-pocket costs we incur. |
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, the standard $10,000 transfer fee is waived for franchises located in Washington state. While the $10,000 transfer fee is typically required when a franchisee sells their business, Crave Cookies specifically states that this fee does not apply in Washington. However, franchisees in Washington are still responsible for covering any broker fees and other out-of-pocket costs incurred during the transfer process.
This waiver of the transfer fee could make a Crave Cookies franchise in Washington more attractive to potential buyers, as it reduces the upfront costs associated with purchasing an existing franchise. It's important for prospective franchisees in Washington to understand that while the $10,000 fee is waived, they are still responsible for any broker fees and other out-of-pocket costs. These costs can vary depending on the specific circumstances of the transfer, so it's essential to factor them into the overall financial planning.
It is not clear from the FDD excerpt why Washington State franchises are exempt from the standard transfer fee. A prospective franchisee should seek clarification from Crave Cookies regarding the specific reasons for this exemption and ensure they fully understand all costs associated with transferring a franchise in Washington, despite the waiver of the $10,000 fee.