When are all franchise fees due for a Crown Gold Exchange Multi-Unit Development Agreement?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
PMENT AGREEMENT
| Type of expenditure | Amount | Method of payment | When due | To whom payment is to be made |
|---|---|---|---|---|
| First franchise (see table above) | $100,158 - $193,900 | Varies | Varies | Varies |
| Additional initial franchise fees for 1-4 Additional Units (see Note 4) | $25,000 - $85,000 | Check or wire transfer | Upon signing |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 12–15)
What This Means (2024 FDD)
According to Crown Gold Exchange's 2024 Franchise Disclosure Document, the franchise fees for a Multi-Unit Development Agreement (MUDA) are due upon signing the agreement. Specifically, the initial franchise fees for any additional units beyond the first are payable at this time. Note 4 clarifies that the franchise fee for the first unit is accounted for separately under the standard Franchise Agreement terms. For the third and each subsequent franchise under a MUDA, the initial franchise fees are reduced to $20,000.
For a prospective Crown Gold Exchange franchisee, this means that when entering into a Multi-Unit Development Agreement, you must be prepared to pay the franchise fees for all additional units upfront. This could represent a significant initial investment, as the fees range from $25,000 to $85,000 for one to four additional units. This upfront payment secures the rights to develop multiple Crown Gold Exchange locations within a specified territory and timeframe.
It is important to note that the initial franchise fee for the first unit is not included in this upfront payment for the MUDA. That fee is paid according to the terms outlined in the standard Franchise Agreement, as indicated in the table. This fee varies from $100,158 to $193,900. Therefore, a franchisee should carefully consider their financial capacity to meet these obligations when signing both the Franchise Agreement and the Multi-Unit Development Agreement with Crown Gold Exchange.