What pre-opening obligations must Crave Cookies fulfill before collecting any initial fees?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
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 the 2025 Crave Cookies FDD, the franchisor has material pre-opening obligations that must be met before the initial franchise fee is fully released. Specifically, Crave Cookies will release the payment of the franchise fee proportionally as each franchise outlet opens.
Crave Cookies must fulfill all its pre-opening obligations under the Franchise Agreement, and the franchisee must be open for business for each specific location before the corresponding portion of the franchise fee is released. This condition is applicable to each franchised business that the franchisee opens under the Multi-Unit Development Agreement (MUDA).
This arrangement protects the franchisee by ensuring that Crave Cookies delivers on its pre-opening support and obligations before receiving the full franchise fee. It also aligns the franchisor's interests with the franchisee's success, as Crave Cookies is incentivized to provide thorough and timely support to get each location up and running. Franchisees should carefully review the Franchise Agreement and MUDA to understand the specific pre-opening obligations of Crave Cookies and ensure that these obligations are clearly defined and achievable.