What does the high end of the leasehold improvement estimate for a Crave Restaurant assume?

According to Crave's 2025 Franchise Disclosure Document, the high end of the leasehold improvements estimate assumes that the franchisee has leased a "vanilla box" space. This means the space is essentially a blank shell, requiring more extensive work to prepare it for a Crave restaurant. The leasehold improvements line item is estimated to range from $50,000 to $250,000 for a Restaurant and $100,000 to $700,000 for a Food Truck, depending on site conditions.

This is a crucial consideration for prospective Crave franchisees because the condition of the leased space can significantly impact their initial investment. A vanilla box space will require substantial build-out, including flooring, walls, electrical work, plumbing, and potentially more, leading to higher costs. Conversely, a space that previously operated as a restaurant and can be converted to a Crave Restaurant would fall on the lower end of the estimate.

It is important to note that these estimates do not include any tenant improvement allowance that a franchisee may negotiate with the landlord. Additionally, Crave requires franchisees to use their designated supplier as the contractor for the build-out, which could affect costs and timelines. If the outlet has axe throwing, the franchisee must use Crave's approved supplier for the design and build-out of the axe lanes.

Therefore, when evaluating potential locations, prospective Crave franchisees should carefully assess the condition of the space and factor in the potential leasehold improvement costs. Negotiating a tenant improvement allowance with the landlord can help offset some of these expenses. Understanding these factors is essential for accurately budgeting the initial investment and ensuring the financial viability of the franchise.