If a Crave franchisee commits to developing a minimum of three units consisting of a combination of Food Trucks and Restaurants, what is the range of the development fee?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
. 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
Source: Item 5 — INITIAL FEES (FDD pages 11–12)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, a multi-unit development agreement requires a development fee. If a franchisee commits to developing a minimum of three units consisting of a combination of Food Trucks and Restaurants, the development fee will range between $60,000 and $85,000. This fee is calculated based on the initial franchise fees for Restaurants and Food Trucks. The initial franchise fee for a Crave Restaurant is $45,000, while the initial franchise fee for a Crave Food Truck is $30,000.
The development fee covers 100% of the initial franchise fee for the first unit and 50% of the initial franchise fee for each additional unit. For example, developing three Food Trucks would cost $60,000 ($30,000 + (2 x $15,000)). Developing three Restaurants would cost $85,000 ($45,000 + (2 x $20,000)). Therefore, any combination of three Food Trucks and Restaurants will fall between these two amounts.
The development fee is fully earned by Crave upon receipt and is non-refundable. A portion of the development fee will be applied to pay the initial franchise fee for the first franchised business in full. For each additional franchised business, a credit of 50% of the initial franchise fee will be applied, with the balance due when the Franchise Agreement is signed for that business. This fee is uniformly applied to all multi-unit developers.