If a Crave franchisee commits to developing three Restaurants under a Multi-Unit Development Agreement, what is the total 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 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 r
Source: Item 5 — INITIAL FEES (FDD pages 11–12)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, a franchisee entering into a Multi-Unit Development Agreement to develop three Restaurants will pay a development fee of $85,000. This fee is calculated as the initial franchise fee for the first restaurant ($45,000) plus 50% of the initial franchise fee for each of the two additional restaurants (2 x $20,000 = $40,000).
The development fee is fully earned by Crave upon receipt and is non-refundable. It is also not credited against any future fees payable under any Franchise Agreement or otherwise. However, a portion of the development fee is applied to pay the initial franchise fee for the first Franchised Business in full. For each additional Franchised Business developed under the Multi-Unit Development Agreement, Crave will apply a credit of 50% of the amount of the initial franchise fee for that Franchised Business.
This means that while the initial outlay is $85,000, the franchisee receives a credit towards the franchise fees for the subsequent two restaurants they develop. This structure incentivizes multi-unit development while ensuring Crave receives upfront compensation for granting development rights. Prospective franchisees should carefully consider their ability to meet the development schedule and financial obligations before committing to a Multi-Unit Development Agreement, as the development fee is non-refundable.