To whom is the initial franchise fee paid when starting a Devon Creek franchise?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Expenditure | Amount Low | Amount High | Method of Payment | When Due | To Whom Payment is Made |
|---|---|---|---|---|---|
| Initial Franchise Fee1 | $39,000 | $39,000 | Lump Sum | At the Signing of the Franchise Agreement | Us |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT – START UP FRANCHISEE (FDD pages 16–21)
What This Means (2024 FDD)
According to Devon Creek's 2024 Franchise Disclosure Document, the initial franchise fee, which ranges from $15,000 to $39,000, is paid directly to Devon Creek. This payment is made as a lump sum when the Franchise Agreement is signed.
This fee compensates Devon Creek for granting the franchisee the right to operate under the Devon Creek brand and utilize its system. It also covers the cost of the Initial Management Training Program, although incidental costs like transportation and lodging for training are separate and paid to third parties.
Prospective franchisees should note that this fee is generally non-refundable, so it's crucial to carefully evaluate the opportunity before signing the agreement. Devon Creek may offer incentive programs that provide a discount on the initial franchise fee, so it is important to inquire about these programs.