factual

What is the condition under which Crave Cookies will collect initial fees from a franchisee?

Crave_Cookies Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (b) Payment**.** Upon execution of this MUDA, Franchisee shall pay the total Initial Franchise Fee to Crave Cookies Franchising for the first location. Each additional location listed on the MUDA can be reserved with a deposit of $5000 with balance owing at the time of lease signing, The Initial Franchise Fee and deposits are non-refundable.
  1. This estimate assumes you sign a Multi-Unit Development Agreement for three to five franchises. The franchise fee for your first unit is counted in the "Estimated Initial Investment – Franchise Agreement" table. Your initial franchise fees are reduced to $26,000 for the second and each additional franchise. You will pay all franchise fees upon signing the MUDA.

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

What This Means (2025 FDD)

According to Crave Cookies' 2025 Franchise Disclosure Document, the initial franchise fee for the first location is due upon the execution of the Multi-Unit Development Agreement (MUDA). If the franchisee plans to open additional locations, a deposit of $5,000 is required for each location when the MUDA is signed, with the remaining balance due at the time of lease signing. These initial franchise fees and deposits are non-refundable.

For franchisees entering into a Multi-Unit Development Agreement for three to five franchises, the franchise fee for the first unit is detailed in the "Estimated Initial Investment – Franchise Agreement" table. The initial franchise fees are reduced to $26,000 for the second and each additional franchise. All franchise fees are payable upon signing the MUDA.

Prospective franchisees should be aware that these fees are non-refundable, representing a significant financial commitment early in the franchise process. This is a fairly standard practice in the franchise industry, as it secures the franchisee's rights to develop the business and compensates the franchisor for initial services and support. However, franchisees should carefully consider their ability to meet the development schedule and brand requirements, as failure to do so could result in termination of the MUDA and loss of the initial fees.

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.