When are the franchise fees due for a Crave Cookies Multi-Unit Development Agreement, and are they refundable?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
ti-Unit Development
If you and we agree that you will develop multiple franchises, then you will sign our Multi-Unit Development Agreement ("MUDA") in the form of Exhibit C to this disclosure document. Your franchise fees will be reduced to $26,000 for each additional franchise after the first franchise. You will pay all franchise fees upon signing the MUDA. They are uniform and not refundable.
Item 6 OTHER FEES
| 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. |
Source: Item 5 — INITIAL FEES (FDD page 11)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, if a franchisee enters into a Multi-Unit Development Agreement (MUDA), the franchise fees are reduced to $26,000 for each additional franchise after the first. The full franchise fees are due upon signing the MUDA. For each additional location listed on the MUDA, a franchisee can reserve it with a deposit of $5,000, with the balance due at the time of lease signing.
These initial franchise fees and deposits are non-refundable. This means that once the MUDA is signed and the fees are paid, the franchisee cannot get this money back, even if they later decide not to open all of the agreed-upon locations. This is a significant financial commitment and risk for the franchisee.
It is important to note that upon execution of the MUDA, the franchisee and Crave Cookies also execute a Franchise Agreement for the first Crave Cookies business. For each additional franchise, the franchisee must execute Crave Cookies' then-current standard form of franchise agreement no later than three business days after leasing or acquiring a location. The MUDA does not give the franchisee the right to construct, open, or operate a Crave Cookies business until a separate franchise agreement is executed for each location.