When is the balance of the initial franchise fee due for each additional Crave Franchised Business developed under the Multi-Unit Development Agreement?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
For each additional Franchised Business you will develop under the Multi-Unit Development Agreement, we will apply a credit of 50% of the amount of the initial franchise fee for that Franchised Business, and the balance of the initial franchise fee due for that Franchised Business is payable in a lump sum when you sign the Franchise Agreement for that Franchised Business.
Source: Item 5 — INITIAL FEES (FDD pages 11–12)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, if a franchisee enters into a Multi-Unit Development Agreement, they will pay a development fee. This fee covers 100% of the initial franchise fee for the first Crave Franchised Business, and 50% of the initial franchise fee for each additional Franchised Business they commit to develop. This development fee is earned upon receipt and is non-refundable.
When the franchisee signs the Franchise Agreement for the first Franchised Business, a portion of the development fee is applied to cover the initial franchise fee in full. For each subsequent Franchised Business under the Multi-Unit Development Agreement, Crave will credit 50% of the initial franchise fee amount.
The remaining balance of the initial franchise fee for each additional Crave Franchised Business is due in a lump sum when the franchisee signs the individual Franchise Agreement for that specific Franchised Business. This policy applies uniformly to all multi-unit developers.