What is the estimated range for additional funds needed for the first 3 months of operating a Crave restaurant?

According to Crave's 2025 Franchise Disclosure Document, a franchisee should budget between $15,000 and $30,000 for additional funds to cover the first three months of operation for a restaurant. These funds are intended to cover ongoing expenses like payroll, utilities, rent, royalty fees, brand development, advertising, and other start-up costs if sales revenue does not cover them.

Crave's estimate for additional funds is based on the principals' experience in opening and operating restaurants and food truck businesses since 2007. The FDD notes that new businesses often experience negative cash flow, so this capital is crucial to sustain the business during the initial months. The estimate does not include any potential sales revenue the franchisee might generate.

It's important to note that this is only an estimate, and Crave does not guarantee that the stated amount will be sufficient. The actual amount needed may vary depending on factors such as the restaurant's location, operating efficiency, and local market conditions. The FDD also clarifies that these amounts do not include any estimates for debt service.

Prospective Crave franchisees should carefully review their financial projections and consider potential variations in expenses and revenues to determine the appropriate level of additional funds required for their specific circumstances. Consulting with a financial advisor is recommended to ensure adequate capitalization during the startup phase.