Are the lease security deposit and utility deposits refundable for a Crave Cookies franchise?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
(2) Section 7, the note section is amended as follows:
Notes
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- Your lease security deposit and utility deposits will usually be refundable unless you owe money to the landlord or utility provider. None of the other expenditures in this table will be refundable. Neither we nor any affiliate finances any part of your initial investment.
Source: Item 23 — RECEIPTS (FDD pages 47–194)
What This Means (2025 FDD)
According to Crave Cookies's 2025 Franchise Disclosure Document, lease security deposits and utility deposits are typically refundable to the franchisee, provided that the franchisee does not owe money to the landlord or utility provider. This is a fairly standard practice in franchising, as these deposits are intended to cover potential damages or unpaid bills.
This refundability is a positive aspect for prospective Crave Cookies franchisees, as it means they can potentially recover a portion of their initial investment when the lease term ends or when they no longer require utility services. However, franchisees should be aware that any outstanding debts owed to the landlord or utility company will be deducted from the deposit refund. Therefore, maintaining good standing with these entities is crucial to ensure a full refund.
It is important to note that while these specific deposits are generally refundable, the FDD explicitly states that none of the other expenditures listed in the initial investment table are refundable. This highlights the importance of carefully considering all costs associated with opening a Crave Cookies franchise, as most of these expenses will not be recoverable.