The reasons people would want multiple territories include:

  • Increasing the potential for long term profits
  • Hedging in (or protecting) areas around the initial store setup
  • An interest in selling the territories in the future for a profit.

We offer discounts on multiple territories but do require that at least two new stores are opened each 12 month cycle. Our franchise fees are $39,000 USD for the first store, $30,000 USD for the second and $27,000 USD for the third and additional stores. When multiple territories are purchased, we only request that a 50% deposit be placed on each additional territory until an LOI issued on a potential location. Prior to an LOI being issued to a landlord, the final and full payment for the franchise must be paid.

EXAMPLE

A city with a population of 250,000 may be determined to have 4 potential territories in it. If a person were to but the “whole city” … or all 4 territories, the total price would be $79,500, or:

  • $39,000 for the first store
  • $30,00 for the second store
  • $27,000 for the third store
  • $27,000 for the fourth store

But the fee structure would be an initial payment of $81,000:

  • $39,000 for the first store
  • $15,000 for the second store (50% of  $30,000)
  • $13,500 for the third store  (50% of  $27,000)
  • $13,500 for the fourth store  (50% of  $27,000)

The remaining balance on that franchise fee must be paid prior to an LOI being issued.

What if someone wants to buy a territory that I own? In that case, you could either opt to keep it and queue it as “next in line” for development, or you could opt to sell the territory. If you opt to sell, then the territory would be sold at $39,000 and the revenue would be split 50/50 between you and CRCC.