Is the Crave development fee refundable or credited against future fees under any Franchise Agreement?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
. This money is not refundable.
Multi-Unit Development Agreement: If you qualify to develop and operate multiple Crave Franchised Businesses, then you will pay to us a development fee equal to 100% of the initial franchise fee for the first Franchised Business you commit to develop under the Multi-Unit Development Agreement plus 50% of the initial franchise fee for each additional Franchised Business you commit to develop under the Multi-Unit Development Agreement. You may commit to develop any combination of Restaurants, Food Trucks, and Express Restaurants under a Multi-Unit Development Agreement. For example, if you commit to develop three Food Trucks, the development fee is calculated as $30,000 + (2 x $15,000 = $30,000) = $60,000. If you commit to develop three Restaurants, the development fee is calculated as $45,000 + (2 x $20,000 = $40,000) = $85,000. If you commit to develop a minimum of three units in some other combination of Food Trucks and Restaurants, the development fee will be an amount between $60,000 and $85,000. The development fee is fully earned by us when received and is not refundable or credited against any future fees payable by you under any Franchise Agreement or otherwise.
You will sign the Franchise Agreement for the first Franchised Business at the same time you sign the Multi-Unit Development Agreement, and we will apply a portion of the development fee to pay the initial franchise fee for the first Franchised Business in full. 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 r
Source: Item 5 — INITIAL FEES (FDD pages 11–12)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the development fee associated with a Multi-Unit Development Agreement is generally not refundable. The development fee is considered fully earned by Crave upon receipt. However, a portion of the development fee is applied to the initial franchise fee for the first Franchised Business in full. For each additional Franchised Business developed under the Multi-Unit Development Agreement, Crave will apply a credit of 50% of the amount of the initial franchise fee for that Franchised Business. The balance of the initial franchise fee due for that Franchised Business is payable in a lump sum when the franchisee signs the Franchise Agreement for that Franchised Business.
For example, if a franchisee commits to developing three Food Trucks, the development fee is calculated as $30,000 for the first truck plus $15,000 for each of the other two trucks, totaling $60,000. Similarly, for three Restaurants, the development fee is $45,000 for the first restaurant plus $20,000 for each of the other two restaurants, totaling $85,000. If a franchisee commits to a combination of Food Trucks and Restaurants, the development fee will fall between $60,000 and $85,000.
In the State of South Dakota, Crave will defer the payment of the initial franchise fee, development fee, and any other initial payment until all of their material pre-opening obligations have been satisfied and until the business opens and is operating. However, the franchisee must execute the Franchise Agreement prior to looking for a site or beginning training. In Maryland, all initial fees and payments owed by franchisees shall be deferred until Crave completes its pre-opening obligations under the franchise agreement, and all development fees and initial payments by area developers shall be deferred until the first franchise under the development agreement opens.