For Endless Summer Sweets, what is the Initial Franchise Fee for location #1?
Endless_Summer_Sweets Franchise · 2024 FDDAnswer from 2024 FDD Document
- (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.
Source: Item 23 — RECEIPTS (FDD pages 39–125)
What This Means (2024 FDD)
According to the 2024 Endless Summer Sweets FDD, the initial franchise fee for the first location is $49,500. The franchisee must pay this fee upon execution of the Multi-Unit Development Agreement (MUDA). This fee is non-refundable.
For each additional franchise location beyond the first, the franchisee must execute Endless Summer Sweets' current standard form of franchise agreement within three business days of leasing or acquiring the location. The MUDA does not grant the franchisee the right to operate an Endless Summer Sweets business until a separate franchise agreement is executed for each location.
Prospective franchisees should note that the initial franchise fee is a one-time, upfront cost. It grants the franchisee the right to use the Endless Summer Sweets system, trademarks, and trade secrets for the first location. The non-refundable nature of the fee means that if the franchisee is unable to open the business for any reason, the fee will not be returned. This is a common practice in franchising, as the franchisor incurs costs in evaluating and onboarding new franchisees.