What is the estimated range for the Crave audit fee?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
luding travel, lodging and meals. |
| (1) | (2) | (3) | (4) |
|---|---|---|---|
| Fees (1) | Amount | Due Date | Remarks |
| Interest | 18% per annum or the highest interest rate allowed by applicable law, whichever is greater | On demand | Interest may be charged on all overdue amounts. Interest accrues from the original due date until payment is received in full. |
| Audit Fee | Cost of audit (estimated to be between $1,000 and $5,000) | When billed | Payable only if we find, after an audit, that you have understated Gross Sales by 2% or more or you have understated any amount you owe to us. You must also pay the |
Source: Item 6 — OTHER FEES (FDD pages 12–19)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, an audit fee may be imposed if an audit reveals that a franchisee has understated Gross Sales by 2% or more, or has understated any amount owed to Crave. The estimated cost of this audit ranges from $1,000 to $5,000. This fee is in addition to the franchisee having to pay the understated amount plus interest.
This means that if Crave suspects a franchisee is not accurately reporting sales or other financial obligations, they can conduct an audit at the franchisee's expense. The cost of the audit itself could be a significant expense, ranging from one thousand to five thousand dollars, depending on the complexity and scope of the audit.
It is important for prospective Crave franchisees to maintain accurate and transparent financial records to avoid triggering an audit. Franchisees should ensure they understand Crave's reporting requirements and have systems in place to track and report Gross Sales accurately. Failure to do so could result in not only the cost of the audit but also the obligation to pay any understated amounts plus interest, potentially creating a significant financial burden.