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Regardless of the timeline, the situation presents a concern with the franchisees ability to raise the amount of capital required to open their first three stores in a timely manner.
• ICEDELIGHTS did not want to be legally bound to the Florida franchise because they felt they might not have sufficient resources to accommodate the franchisees.
• A deal was proposed that would provide the franchisee and franchisor security
o Pay $200,000 up front for development fees and franchise fees for the first five stores
o Pay $20,000 per store opened after the first five stores
o Pay a 5% royalty on sales
• ICEDELIGHTS would then allow the franchisees to use their brand name and product, would train the franchisees and one manager per store, and would provide support for finding locations and construction of the stores...
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