What are all the fees a Crave franchisee might pay, considering both the initial fees in Item 5 and the other fees in Item 6?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
span id="page-10-2">Franchise Agreement: You must pay us an initial franchise fee of $45,000 for the right to establish a single Crave Restaurant under a Franchise Agreement. If you are purchasing your second or third Restaurant, the initial franchise fee will be reduced to $40,000. If you are purchasing your fourth or later Restaurant, the initial franchise fee will be reduced to $35,000.
You must pay us an initial franchise fee of $30,000 for the right to establish a single Crave Food Truck business under a Franchise Agreement. If you already own and operate a Crave Restaurant and desire to own and operate a Food Truck business, the initial franchise fee for the Food Truck will be reduced to $20,000.
From time to time, we may offer special incentive programs as part of our franchise development activities. We currently offer an incentive program where we will discount the initial franchise fee by $5,000 to veterans and active-duty military personnel for the first Franchised Business purchased. We have the right to offer, modify or withdraw any incentive program without notice to you. The initial franchise fee is imposed uniformly on all franchisees and is not refundable under any circumstances.
Grand Opening Marketing: You must pay us $5,000 if you are opening a Restaurant or $2,500 if you are starting a Food Truck business, for a grand opening marketing campaign that we will conduct on your behalf around the opening of your Franchised Business. This money is not refundable.
Multi-Unit Development Agreement: If you qualify to develop and operate multiple Crave Franchised Businesses, then you will pay to us a development fee equal to 100% of the initial franchise fee for the first Franchised Business you commit to develop under the Multi-Unit Development Agreement plus 50% of the initial franchise fee for each additional Franchised Business you commit to develop under the Multi-Unit Development Agreement. You may commit to develop any combination of Restaurants, Food Trucks, and Express Restaurants under a Multi-Unit Development Agreement. For example, if you commit to develop three Food Trucks, the development fee is calculated as $30,000 + (2 x $15,000 = $30,000) = $60,000. If you commit to develop three Restaurants, the development fee is calculated as $45,000 + (2 x $20,000 = $40,000) = $85,000. If you commit to develop a minimum of three units in some other combination of Food Trucks and Restaurants, the development fee will be an amount between $60,000 and $85,000. The development fee is fully earned by us when received and is not refundable or credited against any future fees payable by you under any Franchise Agreement or otherwise.
You will sign the Franchise Agreement for the first Franchised Business at the same time you sign the Multi-Unit Development Agreement, and we will apply a portion of the development fee to pay the initial franchise fee for the first Franchised Business in full. For each additional Franchised Business you will develop under the Multi-Unit Development Agreement, we will apply a credit of 50% of the amount of the initial franchise fee for that Franchised Business, and the balance of the initial franchise fee due for that Franchised Business is payable in a lump sum when you sign the Franchise Agreement for that Franchised Business. The development fee is imposed uniformly on all multi-unit developers and is not refundable under any circumstances.
There are no other purchases from or payments to us or any affiliate of ours that you must make before your Franchised Business opens for business.
ITEM 6 OTHER FEES
| (1) | (2) | (3) | (4) |
|---|---|---|---|
| Fees (1) | Amount | Due Date | Remarks |
| Royalty Fee (2) | Restaurants: 8% |
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, franchisees can expect to pay several fees, both initially and over the course of their agreement. The initial franchise fee for a Crave Restaurant is $45,000, but this is reduced to $40,000 for a second or third restaurant and $35,000 for a fourth or later restaurant. For a Crave Food Truck, the initial franchise fee is $30,000, reduced to $20,000 if the franchisee already owns a Crave Restaurant. Crave also offers a $5,000 discount to veterans and active-duty military personnel for their first franchise. A grand opening marketing fee of $5,000 for a Restaurant or $2,500 for a Food Truck is also required. For franchisees pursuing a Multi-Unit Development Agreement, a development fee is required, calculated based on the number and type of units (Restaurants, Food Trucks, or Express Restaurants) committed to, ranging from $60,000 to $85,000. These initial fees are non-refundable.
Other fees that a Crave franchisee may encounter include participation in a "mystery shopper" quality control program, where the franchisee may be required to cover the costs of the evaluation service. If Crave terminates the Franchise Agreement for cause, the franchisee must pay liquidated damages. This is equal to the average monthly Royalty Fees paid or owed during the 12 months preceding termination, multiplied by either 24 or the number of months remaining in the agreement, whichever is lower. If a franchisee transfers their franchise, they must pay a transfer fee of $5,000.
It is important to note that the Brand Development Fee has been removed, and franchisees are not obligated to pay it. The grand opening marketing expenditure has been amended to replace "Five Thousand Dollars ($5,000)" with "Two Thousand Five Hundred Dollars ($2,500)". The continuing weekly royalty fee for a Crave Food truck is eight percent (8%) of Gross Sales. All fees described are non-refundable and uniformly imposed. Crave retains the right to increase certain fees upon notice to the franchisee due to changes in market conditions, the cost of providing services, and future policy changes.