What factors can affect the cost of leasehold improvements for a Crave Restaurant?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
The cost of leasehold improvements will vary depending on many factors, including: (a) the size and configuration of the premises; (b) pre-construction costs (including demolition of existing walls and removal of existing improvements and fixtures); and (c) cost of materials and labor, which may vary based on geography and location or whether you must use union labor for the build-out of your Restaurant.
These amounts may vary substantially based on local conditions, including the availability and prices of labor and materials.
These costs may also vary depending on whether certain of these costs will be incurred by the landlord or through landlord tenant improvement contributions, and the condition of the space before you take possession of the premises.
The low end of our estimate assumes that you have leased space that previously operated as a restaurant and that you will convert to a Crave Restaurant.
The high end of our estimate assumes that you have leased a "vanilla box" space and that more improvements are required.
Our estimate does not include any tenant improvement allowance that you may negotiate.
You must use our designated supplier as the contractor for the build-out of your Restaurant.
This estimate includes the additional cost of axe lanes.
If your outlet has axe throwing, you must use our approved supplier for the design and build-out of the axe lanes.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 19–26)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the cost of leasehold improvements for a Crave Restaurant can vary significantly based on several factors. These factors include the size and configuration of the premises, which directly impacts the amount of materials and labor required. Pre-construction costs, such as demolition and removal of existing structures, can also add to the expenses. The cost of materials and labor itself is subject to geographical location and whether union labor is mandated for the build-out, influencing the overall cost.
The FDD notes that local conditions, including the availability and prices of labor and materials, can substantially affect these amounts. The condition of the space before the franchisee takes possession also plays a crucial role; for instance, converting a space that previously operated as a restaurant is generally less expensive than improving a "vanilla box" space that requires more extensive work. The document also specifies that the estimate does not include any tenant improvement allowance that the franchisee may negotiate with the landlord.
Prospective Crave franchisees should be aware that these leasehold improvement costs are estimates and can fluctuate widely. The FDD provides an estimated range of $50,000 to $250,000 for leasehold improvements for a Restaurant, dependent on site conditions. Given the variability, it is crucial for franchisees to conduct thorough due diligence, obtain detailed quotes from contractors, and negotiate favorable lease terms with landlords to manage these costs effectively. Additionally, Crave requires franchisees to use their designated supplier as the contractor for the build-out, and approved suppliers for axe lanes if the outlet includes axe throwing, which could also impact costs.