factual

When is the balance of the Initial Franchise Fee owing for each additional Crave Cookies location?

Crave_Cookies Franchise · 2025 FDD

Answer from 2025 FDD Document

Minnesota Minnesota Department of Commerce Securities-Franchise Registration 85 7th Place East, Suite 280 St. Paul, MN 55101-2198 (651) 539-1500 Commissioner of Commerce Minnesota Department of Commerce 85 7th Place East, Suite 280 St. Paul, MN 55101-2198 (651) 539-1500
New York New York State Department of Law Investor Protection Bureau 28 Liberty St. 21st Floor New York, NY 10005 212-416-8236 Secretary of State 99 Washington Avenue Albany, NY 12231
North Dakota North Dakota Securities Department 600 East Boulevard Ave., State Capital Fifth Floor, Dept. 414 Bismarck, ND 58505-0510 (701) 328-4712
Oregon Department of Consumer & Business Services Division of Finance and Corporate Securities Labor and Industries Building Salem, Oregon 97310 (503) 378-4140
Rhode Island Department of Business Regulation Securities Division 1511 Pontiac Avenue John O. Pastore Complex–69-1 Cranston, RI 02920-4407 (401) 462-9527
South Dakota Division of Insurance Securities Regulation 124 South Euclid Suite 104 Pierre, SD 57501-3185 (605) 773-3563
Virginia State Corporation Commission 1300 East Main Street 9th Floor Richmond, VA 23219 (804) 371-9051 Clerk of the State Corporation Commission 1300 East Main Street, 1st Floor Richmond, VA 23219
Washington Department of Financial Institutions Department of Financial Institutions
Securities Division Securities Division
P.O. Box 41200 150 Israel Rd SW
Olympia, WA 98504-1200 Tumwater, WA 98501
(360) 902-8760 (360) 902-8760
Wisconsin Division of Securities Department of Financial Institutions Post Office Box 1768 Madison, WI 53

Source: Item 23 — RECEIPTS (FDD pages 47–194)

What This Means (2025 FDD)

According to Crave Cookies' 2025 Franchise Disclosure Document, when a franchisee signs a Multi-Unit Development Agreement (MUDA), they must pay the total initial franchise fee for the first location. For each additional Crave Cookies location listed on the MUDA, the franchisee can reserve the location with a $5,000 deposit. The remaining balance of the initial franchise fee is due when the franchisee signs the lease for that specific location. The initial franchise fee and deposits are non-refundable.

This arrangement allows franchisees to secure rights to multiple locations with an initial deposit, deferring the full franchise fee payment until closer to the opening of each individual store. This can ease the upfront financial burden for multi-unit developers. However, the non-refundable nature of the initial franchise fee and deposits means that if a franchisee fails to open a reserved location, they risk losing the deposit.

Prospective Crave Cookies franchisees should carefully consider their development plans and financial capabilities before committing to a MUDA. Understanding the timeline for securing locations and the associated payment schedule is crucial for managing cash flow and minimizing potential losses. Franchisees should also confirm whether the initial franchise fee is reduced for the second and subsequent locations as stated elsewhere in the FDD.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.