For a Crave franchise, what is the base monthly rent if sales do not exceed $50,000?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
sit, Other**
- 1. Rent Commencement Date: The rent commencement date shall be February 1st, 2025, or the first day the tenant is open for business, whichever is earlier.
- 2. Base Rent: Commencing on the rent commencement date, Sublessee shall pay Sublessor base rent monthly of five thousand dollars, ($5000), or shall sales exceed fifty thousand dollars for any month period of the first of the month to the last day of the mont
Source: Item 22 — CONTRACTS (FDD pages 62–63)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the base monthly rent is $5,000 if the franchisee's gross monthly sales are $50,000 or less. However, if sales exceed $50,000 for any month, the franchisee will pay 7% of gross sales as rent.
The rent commencement date is February 1, 2025, or the first day the tenant is open for business, whichever is earlier. Rent is due on the first day of the month following the anniversary of the rent commencement date.
In addition to base or percentage rent, Crave franchisees must also pay a security deposit of $5,000 upon signing the lease. Franchisees are also required to provide a sales report to the sublessor by the tenth of each month. This report should detail the gross sales for the previous month. Furthermore, franchisees must provide an annual report from an independent certified accountant, verifying gross sales and percentage rent calculations.