When are franchise fees paid when signing a Multi-Unit Development Agreement (MUDA) with Crave Cookies?
Crave_Cookies Franchise · 2025 FDDAnswer 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 5 — INITIAL FEES (FDD page 11)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, when signing a Multi-Unit Development Agreement (MUDA), the franchise fee payment schedule depends on whether it is for the first location or subsequent locations. Upon executing the MUDA, the franchisee must pay the total initial franchise fee for the first location. For each additional location listed on the MUDA, a deposit of $5,000 is required to reserve the location, with the remaining balance due at the time the lease is signed. These initial franchise fees and deposits are non-refundable.
For franchisees considering a multi-unit development, this means that the initial investment will be staggered. The initial franchise fee for the first location is due upfront when the MUDA is signed. This is followed by a $5,000 deposit for each additional location to reserve it, providing some financial flexibility. The balance for each additional franchise is then due when the lease is signed for that specific location.
This payment structure allows franchisees to spread out the initial investment over time, aligning payments with key milestones in the development process, such as securing a lease. However, franchisees should be aware that all initial franchise fees and deposits are non-refundable, so careful planning and due diligence are essential before entering into a MUDA with Crave Cookies. This is a fairly standard practice in the franchise industry, as it secures the franchisee's commitment to developing multiple units while providing the franchisor with upfront capital for support and resources.