Is the Initial Franchise Fee refundable for a Crave Cookies franchise under the MUDA?
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 23 — RECEIPTS (FDD pages 47–194)
What This Means (2025 FDD)
According to the 2025 Crave Cookies FDD, the initial franchise fee and deposits paid under the Multi-Unit Development Agreement (MUDA) are non-refundable. Upon executing the MUDA, the franchisee must pay the total initial franchise fee to Crave Cookies Franchising for the first location. For each additional location listed on the MUDA, a deposit of $5,000 is required, with the remaining balance due upon lease signing.
This non-refundable policy means that if a prospective Crave Cookies franchisee decides not to proceed with opening additional locations after signing the MUDA and paying the initial fees or deposits, they will not receive a refund of those amounts. This is a significant financial risk that potential franchisees should carefully consider. Franchisees should conduct thorough due diligence and secure appropriate financing before entering into a MUDA with Crave Cookies.
It is important to note that this policy applies specifically to the initial franchise fee and deposits under the MUDA. The FDD does not specify whether this non-refundable policy is different in certain states. Prospective franchisees should consult with a franchise attorney to understand the implications of this non-refundable fee in their specific state and to assess the overall risks and benefits of investing in a Crave Cookies franchise.