What is the estimated range for additional funds needed for the first 3 months of operation for 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 | | Total (17) | $266,300 to $343,550 | | | | * * * * *
YOUR ESTIMATED INITIAL INVESTMENT – EXPRESS RESTAURANT
| (1) Type of Expenditure | (2) Amount | (3) Method of Payment | (4) When Due | (5) To Whom Payment is to be Made |
|---|---|---|---|---|
| Initial Franchise Fee (1) | $45,000 | Lump Sum | When Franchise Agreement Signed | Us |
| Lease & Utility Security Deposit (3) | $5,000 | As arranged | As arranged | Crave WM Franchising LLC(Landlord) |
| Design & Architect | $5,000 to $35,000 | As arranged | As arranged | Designer or |
| Fees (4) | Architect | |||
| Leasehold | $50,000 to $250,000 | As arranged | As arranged | Contractor |
| Improvements (5)- | ||||
| dependent on site conditions | ||||
| Signage (6) | $3,000 to $30,000 | As arranged | As arranged | Suppliers |
| Equipment, | $100,000 to 150,000 | As arranged | As arranged | Suppliers |
| Furniture and | ||||
| Fixtures (7) | ||||
| Point-of-Sale & Computer Equipment (8) | $1,500 to $5,000 | As arranged | As arranged | Suppliers |
| Business Licenses & Permits (Not Including Beer/Wine (9) License) | $500 to $2500 | As arranged | As arranged | Government Agencies |
| Professional Fees | $1,000 to $3,500 | As arranged | As arranged | Attorney, |
| (10) | Accountant |
| (1) | (2) | (3) | (4)
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 3 months of operation range from $5,000 to $15,000 for an Express Restaurant and $15,000 to $30,000 for a Restaurant or Food Truck. 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 based these figures 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, and this estimate does not include any potential sales revenue. The franchisee is responsible for determining how these additional funds are spent.
It's important to note that these are only estimates, and Crave does not guarantee that the provided amount will be sufficient to cover all ongoing expenses during the initial three-month start-up phase or afterward. The estimates also do not include any debt service. Prospective franchisees should carefully consider their financial situation and local market conditions to determine if they will need more than the estimated additional funds.