Is the Crave development fee refundable?

According to the 2025 Crave FDD, the development fee's refundability depends on the state where the franchise is located. In Maryland, the initial fees and payments, including development fees, are deferred until Crave completes its pre-opening obligations under the franchise agreement, and for area developers, until the first franchise opens. This suggests that in Maryland, the development fee is not paid upfront and thus not subject to refund until certain obligations are met.

In Virginia, the FDD includes an addendum addressing franchise law, particularly concerning the cancellation of a franchise, but it does not specifically mention the refundability of the development fee. This addendum focuses on the franchisee's rights and the conditions under which a franchise can be terminated, indicating a concern for franchisee protection under Virginia law.

For a prospective Crave franchisee, it is crucial to understand the specific terms and conditions regarding the development fee in their state. If the franchise is located in Maryland, the franchisee should confirm that the fees are indeed deferred until the pre-opening obligations are met. In other states, it is important to clarify with Crave under what circumstances, if any, the development fee is refundable. This information is vital for making an informed investment decision and understanding the financial risks involved.