What is the initial franchise fee for an Endless Summer Sweets franchise?
Endless_Summer_Sweets Franchise · 2024 FDDAnswer from 2024 FDD Document
meanings given in the Franchise Agreement). Franchisor and Franchisee desire that Franchisee multiple businesses. 1. Multi-Unit Commitment. (a) Development Schedule; Fee. Franchisee shall develop and open businesses on the following schedule:
| Location # | Deadline for Opening | Total Restaurants to be Open and Operating on Deadline | Initial Franchise Fee |
|---|---|---|---|
| 1 | 1 | $ | |
| 2 | 2 | $ | |
| 3 | 3 | $ | |
| 4 | 4 | $ | |
| 5 | Total Initial Franchise Fee: | 5 | $ |
- (b) Payment**.** Upon execution of this MUDA, Franchisee shall pay the total Initial Franchise Fees to Franchisor. The Initial Franchise Fees are non-refundable.
- 2. Form of Agreement. For the first location, Franchisee and Franchisor have executed the Franchise Agreement simultaneously with this MUDA. For each additional franchise, Franchisee shall execute Franchisor's then-current standard form of franchise agreement no later than three business days after Franchisee leases or acquires a location for the franchise. This MUDA does not give Franchisee the right to construct, open, or operate an Endless Summer Sweets business, and Franchisee acknowledges that Franchisee may construct, open, and operate each Endless Summer Sweets business only pursuant to a separate franchise agreement executed pursuant to this MUDA for each Endless Summer Sweets business.
| 3. | | Development Area.
Source: Item 5 — INITIAL FEES (FDD page 7)
What This Means (2024 FDD)
Based on the 2024 Endless Summer Sweets Franchise Disclosure Document, the initial franchise fee must be paid upon the execution of the Multi-Unit Development Agreement (MUDA). The FDD specifies that these initial franchise fees are non-refundable.
For franchisees pursuing a multi-unit development, the Franchise Agreement is executed simultaneously with the MUDA for the first location. For each subsequent franchise location, the franchisee must execute the franchisor's current standard form of franchise agreement within three business days of leasing or acquiring the location. The MUDA itself does not grant the franchisee the right to open or operate an Endless Summer Sweets business; this right is only granted through a separate franchise agreement for each location.
For California franchisees who sign a development agreement, the payment of the development and initial fees attributable to a specific unit in your development schedule is deferred until that unit is open. This is due to the Department determining that the franchisor has not demonstrated they are adequately capitalized and/or that they must rely on franchise fees to fund their operations.