Is the initial franchise fee for a Crave Cookies franchise refundable?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
/span>Franchise Fee
When you sign your franchise agreement, you must pay us $39,500 as the initial franchise fee. After the purchase of your first franchise, you can purchase additional franchises for $26,000. This $26,000 pricing is available only when the ownership of the second location is identical to the ownership of the first franchise purchased. This fee is not refundable.
Franchisor will not collect any initial fees in Illinois, Virginia, or Washington until Franchisor has satisfied its pre-opening obligations to Franchisee and Franchisee has commenced doing business.
Proprietary Boxes and Merchandise
You must purchase the boxes and promotional merchandise you will use in the operation of the franchised business from Crave Cookies Franchising, LLC. This requirement includes the new store beginning order that is currently $6585.00 and includes beginning boxes and supplies.
Source: Item 5 — INITIAL FEES (FDD page 11)
What This Means (2025 FDD)
According to Crave Cookies's 2025 Franchise Disclosure Document, the initial franchise fee is generally not refundable. For a single franchise agreement, the initial franchise fee is $39,500 and is explicitly stated as non-refundable. Similarly, for franchisees entering into a Multi-Unit Development Agreement (MUDA), the franchise fees, which are reduced to $26,000 for each additional franchise after the first, are also non-refundable. Furthermore, any deposits made under the MUDA are also non-refundable.
This non-refundable policy is a standard practice in the franchise industry, as the initial fee compensates the franchisor for the time and resources spent in evaluating and onboarding a new franchisee. These resources include providing training, site selection assistance, and access to the Crave Cookies brand and operating system.
Prospective Crave Cookies franchisees should be aware of this non-refundable policy and carefully consider their decision before signing the franchise agreement and paying the initial fee. It is crucial to conduct thorough due diligence, review the FDD carefully, and seek professional advice to ensure they fully understand the terms and conditions of the franchise agreement.