When are the initial franchise and development fees due for a Crave franchise in Illinois?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
The Fees sections of the Franchise Agreement and Multi-Unit Development Agreement are amended to state all initial franchise and development fees are deferred until Franchisor has satisfied its pre-opening obligations to franchisee and the franchisee has commenced business operations. The Illinois Attorney General's Office imposed this deferral requirement due to Franchisor's financial condition.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, for franchisees in Illinois, the initial franchise and development fees are deferred. These fees are not due until Crave has fulfilled its pre-opening obligations to the franchisee and the franchisee has commenced business operations. This deferral requirement was mandated by the Illinois Attorney General's Office due to Crave's financial condition.
This means that prospective Crave franchisees in Illinois will not have to pay the initial franchise or development fees upfront. Instead, these fees are delayed until Crave has met its obligations, such as providing training and site selection assistance, and the franchisee has started running their Crave business.
This arrangement could be beneficial for franchisees as it reduces the initial financial burden and risk. It also provides some assurance that Crave is committed to supporting the franchisee through the initial setup phase. However, it is important for prospective franchisees to understand exactly what Crave's pre-opening obligations are and to ensure that these obligations are clearly defined in the franchise agreement.