What is the assumption made by Crave regarding the number of Franchised Businesses a franchisee will develop when estimating the Development Fee and Initial Franchise Fee?

According to Crave's 2025 Franchise Disclosure Document, the estimated Development Fee and Initial Franchise Fee assume that a franchisee will develop a minimum of three Franchised Businesses. The low end of the estimate represents the development fee for committing to three Express Restaurants, while the high end represents the development fee for committing to three full-service Restaurants.

For prospective multi-unit developers, this means the initial financial commitment is based on opening at least three locations. If a franchisee commits to developing more than three Franchised Businesses, the development fee will increase by 50% of the initial franchise fee for each additional Food Truck or Restaurant they commit to develop. This incentivizes franchisees to expand their operations beyond the initial three units.

This structure is common in multi-unit franchise agreements, where franchisors offer incentives for franchisees to commit to developing multiple locations. This approach allows Crave to expand more rapidly while providing franchisees with the opportunity to build a larger, more profitable business. However, franchisees should carefully consider their financial capacity and operational capabilities before committing to developing multiple units, as each location will require additional investment and management oversight.