What initial fee is specified in the Crave Franchise Agreement?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
You shall execute the Franchise Agreement for the first Franchised Business contemporaneously with your execution of this Agreement and a portion of the Development Fee will be used to satisfy the initial franchise fee for such first Franchised Business in full.
For each additional Franchised Business developed hereunder, we will apply a credit of fifty percent (50%) of the amount of the initial franchise fee toward the amount of the initial franchise fee due for such Franchised Business.
The balance of the initial franchise fee is payable to us in a lump sum upon execution of the Franchise Agreement for that Franchised Business.
(f) The transferee shall execute, for a term ending on the expiration date of this Agreement and with such successor terms as may be provided by this Agreement, the standard form franchise agreement then being offered to new System franchisees and other ancillary agreements as we may require for the Franchised Business, which agreements shall supersede this Agreement and its ancillary documents in all respects and the terms of which agreements may differ from the terms of this Agreement, including, without limitation, the then-current Royalty Fee and Brand Development Fee (as applicable); provided, however, that the transferee shall not be required to pay any initial franchise fee;
(j) When you submit your request for our approval of the transfer, you shall pay to us a transfer fee equal to Five Thousand Dollars ($5,000) to reimburse us for reviewing the application to transfer, including, without limitation, training expenses, legal and accounting fees;
3.2.2 We shall, within six (6) months before the expiration of the Initial Term, provide you with any documents that you are required to execute for the successor term, which documents may include, but are not limited to, a general release, our then-current Franchise Agreement and all other ancillary agreements, instruments and documents then customarily used by us in the granting of business franchises (all of which will contain terms and fees substantially the same as those included in Franchise Agreements being executed at the time the successor term commences, and which will not obligate you to pay a further initial franchise fee, but will require payment of a successor agreement fee equal to Five Thousand Dollars ($5,000)) (the "Successor Franchise Documents").
3.2.3 You shall execute the Successor Franchise Documents and all other documents and instruments that we require in order to enter into a successor Franchise Agreement. You shall return the executed Successor Franchise Documents to us, together with payment of our then-current successor agreement fee, by no later than the expiration date of the Initial Term. If we do not receive the executed documents and successor agreement fee by such expiration date, then this Agreement shall expire, you shall have no further rights under this Agreement, and you shall comply with the provisions of Article 18 and any other provisions that survive termination or expiration of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to the 2025 Crave FDD, the franchise agreement requires payment of an initial franchise fee. For franchisees who sign a Development Agreement, a portion of the Development Fee will cover the initial franchise fee for the first franchised business. For each additional franchised business developed under the agreement, Crave will apply a credit of fifty percent of the initial franchise fee amount toward the initial franchise fee due. The balance of the initial franchise fee is due upon execution of the Franchise Agreement for that Franchised Business.
For a transfer of a franchise, the transferee is not required to pay any initial franchise fee. However, the transferee must pay a $5,000 transfer fee to reimburse Crave for reviewing the application to transfer, including training expenses, legal, and accounting fees.
For a successor agreement, the franchisee will not be obligated to pay a further initial franchise fee, but will be required to pay a successor agreement fee equal to $5,000. The franchisee must return the executed Successor Franchise Documents to Crave, together with payment of their then-current successor agreement fee, by no later than the expiration date of the Initial Term.