How does the initial franchise fee for Crave (Item 5) relate to the franchisee's obligations (Item 9)?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
| Obligation | Article or Section in Agreement | Disclosure Document | |
|---|---|---|---|
| Item | |||
| f. Fees | FA – Articles 3, 4, 6, 7, 8, 11, 14 and 18 MUDA – Sections 2 and 3 | Items 5, 6, 7 and 11 |
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, Item 9 outlines the franchisee's obligations, and it references Item 5, which details the initial fees. Specifically, Item 9f lists 'Fees' as an obligation, referencing Articles 3, 4, 6, 7, 8, 11, 14, and 18 of the Franchise Agreement and Sections 2 and 3 of the Multi-Unit Development Agreement, and connects it to Items 5, 6, 7, and 11 of the FDD. This indicates that the initial franchise fee, as described in Item 5, is a key financial obligation for Crave franchisees.
The initial franchise fee for a single Crave Restaurant is $45,000, while it is $30,000 for a Crave Food Truck. These fees are reduced for franchisees purchasing additional locations. Item 5 also mentions a grand opening marketing fee of $5,000 for a Restaurant and $2,500 for a Food Truck. These fees are non-refundable and must be paid to Crave. Item 9f makes it clear that paying these initial fees is a fundamental obligation for the franchisee, alongside other ongoing fees detailed in the referenced articles and sections.
In essence, Item 9 serves as a roadmap, directing prospective Crave franchisees to the specific sections of the Franchise Agreement and Disclosure Document that elaborate on their various duties. By referencing Item 5 within the context of franchisee obligations, Crave emphasizes the financial commitments required to start and operate a franchise. This includes not only the initial franchise fee but also other potential pre-opening expenses and ongoing fees, all of which are critical for franchisees to understand and budget for.