What credit does Crave apply to the initial franchise fee for each additional 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. The development fee is imposed uniformly on all multi-unit developers and is not refundable under any circumstances.
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 qualifies to develop and operate multiple Crave Franchised Businesses under a Multi-Unit Development Agreement, Crave will apply a credit of 50% of the initial franchise fee for each additional Franchised Business. The balance of the initial franchise fee is due in a lump sum when the franchisee signs the Franchise Agreement for that Franchised Business.
For example, if the initial franchise fee for a Crave Restaurant is $45,000, the credit applied would be $22,500, leaving a balance of $22,500 to be paid when signing the Franchise Agreement for each additional restaurant. This credit applies uniformly to all multi-unit developers.
It is important to note that the initial development fee paid when signing the Multi-Unit Development Agreement is separate from the initial franchise fee for each location. The development fee is fully earned by Crave upon receipt and is not refundable or credited against any future fees payable under any Franchise Agreement or otherwise. This means that while franchisees receive a credit on the initial franchise fee for subsequent locations, the initial development fee is a separate, non-refundable payment.