Dirty Dough
Dirty Dough Cookies offers franchises in cookie, dirty drink, and dessert businesses. Known for creative cookie flavors and unique drinks, it operates in the quick-serve food industry.
Dirty Dough franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a single brick and mortar Dirty Dough® Cookies franchised business ranges from $153,600 to $510,000. This includes the payment of $40,000 to $147,000 to the franchisor or its affiliates. [p.2]
What is the initial franchise fee?
The initial franchise fee is $35,000, payable in a lump sum upon signing the franchise agreement. However, this amount may be discounted for initial franchisees, friends, and family members [p.11]. Starting from January 2023, the initial franchise fee has been reduced to $29,500 [p.143].
What are the ongoing royalty and advertising fees?
The ongoing royalty is a non-refundable fee paid weekly as specified in Exhibit 'A-3' [p.77]. For advertising fees, there is an optional Advertising Fund fee that can be used for national or regional marketing programs at the company's discretion [p.17, p.30], and it is recommended to spend a minimum of $1,000 per month locally on advertising your franchise business [p.17].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts. The provided FDD does not mention the duration of the initial franchise agreement or details about its renewal process beyond certain conditions that may apply to non-renewal [p.152].
Can I sell or transfer my franchise, and what does that require?
The franchisor can refuse to permit the transfer of ownership of a franchise except for good cause [p.6]. Transfers typically require payment of a transfer fee and training fee for the new franchisee [p.102], and the transferee must complete the required training program [p.102]. This isn't specified in the excerpts regarding specific requirements or processes for selling your franchise to another party.
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the franchise agreement if you fail to comply with any lawful provision in the franchise agreement and do not cure such failure within a reasonable time, typically no more than 30 days [p.6(c)]. Additionally, the franchisor can terminate your agreement for failing to meet minimum sales requirements or development deadlines [p.5, p.28].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The provided FDD does not detail specific net worth or liquid capital requirements for franchisees to qualify. However, it outlines certain financial obligations once a franchisee is operational, such as maintaining $125,000 in liquid capital and achieving an annual net revenue of $200,000 after one year of operation [p.36].
Do I get an exclusive or protected territory?
No, you do not receive a protected or exclusive territory. The FDD indicates that you may face competition from other franchisees, company-owned outlets, and competitive brands [p.57, p.35]. Additionally, the franchisor retains the right to establish additional traditional franchises or company-owned units within your territory if no exclusive territory is designated [p.142, p.151].
What training and ongoing support does the franchisor provide?
The franchisor provides an initial online training program and an in-person training program held in Cincinnati, Ohio, which lasts approximately 2-3 days but can extend to about 5 to 7 days based on attendees' prior experience [p.33]. The training may be updated without notice, and the duration and content can vary accordingly [p.34]. Additionally, franchisees are required to complete all retraining courses as needed and attend annual or special meetings called by the franchisor [p.83].
How many franchised outlets are there, and how many have closed or been terminated?
The FDD indicates that a total of 290 units have been reserved for franchises, but it does not specify the exact number of currently active outlets or those that have closed or been terminated. [p.53] mentions reservations under franchise agreements and area development agreements but does not provide current operational numbers or terminations.
Does the franchisor share any financial performance or earnings information?
The franchisor may provide financial performance information if there is a reasonable basis for it, and such information can include actual records of an existing outlet you are considering buying. However, the franchisor does not make any representations about future financial performance or past financial performance of company-owned or franchised outlets, nor do they authorize their employees or representatives to make such claims [p.47, p.48].
What am I restricted to selling, and where must I buy supplies?
You are restricted to providing services within your designated territory and have the right to sell products such as catering services and home deliveries only within this territory. However, you must receive prior written approval from the franchisor to provide any catering or home delivery services outside of your territory [p.36]. Regarding supplies, you may need to buy or lease items from the franchisor or a limited group of suppliers designated by them, which might be more expensive than other options [p.4].