Is the initial franchise fee for Crave Cookies 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.
Multi-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's 2025 Franchise Disclosure Document, the initial franchise fee is generally not refundable. For a single franchise, the initial fee is $39,500, and the document explicitly states this fee is not refundable. If a franchisee enters into a Multi-Unit Development Agreement (MUDA) to develop multiple franchises, the franchise fee is reduced to $26,000 for each additional franchise after the first. These fees paid upon signing the MUDA are also not refundable.
This non-refundable policy is a standard practice in franchising. It means that once the franchise agreement or MUDA is signed and the fees are paid, a prospective Crave Cookies franchisee cannot get this money back, even if they later decide not to proceed with opening a franchise. This underscores the importance of thorough due diligence and careful consideration before signing any agreements and paying the initial franchise fee.
However, there is a specific condition mentioned for franchisees in Illinois, Virginia, or Washington. Crave Cookies will not collect any initial fees in these states until they have satisfied their pre-opening obligations to the franchisee and the franchisee has commenced business. This provides a degree of protection for franchisees in those states, ensuring that they only pay the initial fee once Crave Cookies has fulfilled their initial responsibilities and the business is ready to start operating.
Additionally, if a franchisee reserves additional locations under a MUDA, a deposit of $5,000 is required for each location, with the balance due at the time of lease signing. These initial franchise fees and deposits are also non-refundable. Therefore, prospective Crave Cookies franchisees should be fully aware of the financial commitment and the non-refundable nature of these fees before entering into any agreements.