factual

Besides royalties and technology fees, what other service fees contribute to Crave's other revenue sources?

Crave Franchise · 2025 FDD

Answer from 2025 FDD Document

Other revenue sources include initial fees for new franchisees which is mainly focused on marketing and initial set up of the franchisee, royalties, technology, and other service fees that are invoiced and earned either monthly or when a franchisee signs a franchise agreement.

Source: Item 23 — RECEIPTS (FDD pages 63–253)

What This Means (2025 FDD)

According to Crave's 2025 Franchise Disclosure Document, other revenue sources include initial fees for new franchisees, which are mainly focused on marketing and initial set up of the franchisee, royalties, technology, and other service fees that are invoiced and earned either monthly or when a franchisee signs a franchise agreement.

For prospective franchisees, this means that Crave's revenue stream is not solely dependent on royalties and technology fees. The initial fees paid by new franchisees for marketing and setup contribute to Crave's overall revenue. This diversified revenue model could potentially provide Crave with financial stability and resources for further development and support of the franchise system.

It's important to note that the FDD does not provide a detailed breakdown of the specific amounts generated from each of these 'other service fees.' A prospective franchisee should inquire about the specific types of 'other service fees' charged by Crave and their relative contribution to the franchisor's revenue. Understanding the composition of these fees can help a franchisee assess the overall cost structure and potential profitability of the franchise.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.