When is the initial franchise fee considered fully earned by Devon Creek?

According to Devon Creek's 2024 Franchise Disclosure Document, the initial franchise fee is considered fully earned when the Franchise Agreement is signed. The document specifies that the grant of the franchise and the rights and obligations outlined in the agreement are the sole consideration for this initial fee.

This means that once a franchisee signs the agreement, Devon Creek has earned the fee and is under no obligation to refund it, regardless of any circumstances. The FDD clearly states that the initial fee is not refundable under any circumstances. The franchisee must pay the full initial fee upon signing the Franchise Agreement.

This is a standard practice in franchising, as the initial fee compensates the franchisor for the initial costs and efforts in granting the franchise, including evaluating the franchisee, providing training, and setting up the franchisee with the Devon Creek system. Prospective franchisees should carefully consider this non-refundable aspect before signing the agreement and paying the initial franchise fee.