When is the Crave development fee payable?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
The fees section of the Franchise Agreement is amended to state: "Based upon the franchisor's financial condition, the Maryland Securities Commissioner has required a financial assurance.
Therefore, all initial fees and payments owed by franchisees shall be deferred until the franchisor completes its pre-opening obligations under the franchise agreement.
In addition, all development fees and initial payments by area developers shall be deferred until the first franchise under the development agreement opens."
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the standard payment schedule for development fees may be altered by state-specific addenda. For instance, in Maryland, the development fees and initial payments for area developers are deferred until the first franchise under the development agreement opens.
This means that for franchisees in Maryland, the financial burden of the development fee is delayed until the initial franchise location begins operations. This could ease the upfront financial strain on new franchisees, allowing them to allocate resources to setting up the business.
It is important to note that these deferrals are specific to certain states like Maryland and might be subject to the franchisor's financial condition and the requirements of state regulators. Prospective franchisees should carefully review the addenda applicable to their specific state and consult with Crave to understand the exact payment terms for their development fees.