What is the estimated range for additional funds needed for the first 3 months of operating a Crave franchise?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
arranged | Upon Truck Lease Signing | Us |
| (1) | (2) | (3) | (4) | (5) |
|---|---|---|---|---|
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to be Made |
| Additional Funds – 3 Months (16) | $5,000 to $15,000 | As arranged | As arranged | You Determine |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 19–26)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the estimated additional funds needed for the first three months of operation range from $15,000 to $30,000 for a Restaurant and $5,000 to $15,000 for a Food Truck. These funds are intended to cover ongoing expenses such as payroll, utilities, rent, royalty fees, brand development, advertising fees, and other start-up costs if these costs are not covered by sales revenue.
Crave's estimate relies on the principals' experience in opening and operating restaurants and food truck businesses since 2007. The FDD notes that new businesses often generate a negative cash flow, so having sufficient capital to cover these initial expenses is crucial. This estimate does not include any potential sales revenue a franchisee might generate, meaning franchisees should not rely on this estimate as a guaranteed amount, but rather a baseline to plan from.
Prospective Crave franchisees should carefully consider these figures and conduct their own financial analysis, taking into account local market conditions, anticipated sales volume, and personal financial circumstances. It is important to note that these are only estimates, and there is no guarantee that additional working capital will not be necessary during the start-up phase or after. Additionally, these amounts do not include any estimates for debt service, which could significantly impact the total funds needed.