When is the full amount of the initial franchise fee due to Devon Creek?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
- 6.1.1 Initial Franchise Fee. Franchisee acknowledges and agrees that the grant of this Franchise and the rights and obligations of the parties under this Agreement constitute the sole and only consideration for the initial franchise fee as set forth in Attachment 1 to the Franchise Agreement(the "Initial Fee"). The Initial Fee is fully earned at the time this Franchise Agreement is signed and is not refundable
- under any circumstances. Franchisee shall pay the full amount of the Initial Fee to Franchisor upon Franchisee's execution of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2024 FDD)
According to the 2024 Devon Creek Franchise Disclosure Document, the full amount of the initial franchise fee is due upon the franchisee's execution of the Franchise Agreement. Devon Creek states that the initial fee is fully earned when the Franchise Agreement is signed and is not refundable under any circumstances.
This means that a prospective Devon Creek franchisee must be prepared to pay the entire initial franchise fee at the time of signing the agreement to secure the rights to operate a franchise. This is a standard practice in franchising, as the initial fee compensates the franchisor for granting the franchise and providing initial support and training.
It is important for potential Devon Creek franchisees to understand that this fee is non-refundable, regardless of any circumstances that may arise. Therefore, careful consideration and due diligence are essential before signing the Franchise Agreement and paying the initial fee. Franchisees should ensure they have the necessary financial resources and a solid business plan before committing to the franchise.