When will the Crave Cookies franchisor collect the initial franchise fee from the franchisee?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor will not collect any initial fees until it has provided its pre-opening obligations under the Franchise Agreement and the franchisee is open for business.
Because franchisor has material pre-opening obligations with respect to each franchised business Franchisee opens under the Multi-Unit Development Agreement, payment of the franchise fee will be released proportionally with respect to each franchise outlet opened and until franchisor has met all its pre- opening obligations under the Agreement and Franchisee is open for business with respect to each such location.
Source: Item 23 — RECEIPTS (FDD pages 47–194)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, the timing of initial fee collection depends on whether the franchisee signs a single Franchise Agreement or a Multi-Unit Development Agreement (MUDA). For a single franchise, Crave Cookies will not collect any initial fees until it has fulfilled its pre-opening obligations as outlined in the Franchise Agreement, and the franchisee has opened their business.
For franchisees entering into a MUDA, the initial franchise fee for the first location is due upon execution of the MUDA. For each additional location listed in the MUDA, a deposit of $5,000 is required to reserve the location, with the remaining balance of the franchise fee due when the franchisee signs the lease for that location. These initial franchise fees and deposits are non-refundable.
For franchisees entering into a MUDA, the franchise fee will be released proportionally with respect to each franchise outlet opened and until Crave Cookies has met all its pre-opening obligations under the Agreement and Franchisee is open for business with respect to each such location.