Besides base rent, what other charges might I have to pay under a Crave Restaurant lease?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
Our estimates assume that you will lease space for your Restaurant. Your Restaurant must be in a shopping mall, in strip centers or a free-standing location with easy access and ample parking, and you will need approximately 1,800 to 3,500 square feet. Landlords may vary the base rental rate and charge rent based on a percentage of gross sales. In addition to base rent, your lease may require you to pay common area maintenance charges ("CAM Charges") for your pro rata share of the real estate taxes and insurance, and your pro rata share of other charges. The actual amount you pay under the lease will vary depending on the size of the Restaurant, the types of charges that are allocated to tenants under the lease, your ability to negotiate with landlords and the prevailing rental rates in the geographic region.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 19–26)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, in addition to base rent, a franchisee's lease may require them to pay common area maintenance charges, also known as "CAM Charges." These CAM Charges cover the franchisee's pro rata share of real estate taxes, insurance, and other charges allocated to tenants under the lease. The actual amount a franchisee pays will vary based on the restaurant's size, the types of charges allocated to tenants, the franchisee's negotiation skills, and prevailing rental rates in the geographic region.
This means that prospective Crave franchisees need to budget not only for the base rent but also for these additional CAM charges, which can fluctuate. These charges are a standard component of commercial leases, but the specific costs can vary significantly based on the location and terms of the lease agreement. Franchisees should carefully review the lease agreement and negotiate terms where possible to manage these costs effectively.
It is important for potential Crave franchisees to understand that these additional lease-related expenses can impact their overall operating costs and profitability. Therefore, thorough due diligence, including a detailed review of the lease terms and negotiation with the landlord, is crucial before signing a lease agreement. Seeking professional advice from a real estate attorney or consultant experienced in commercial leasing can also be beneficial.