How does the initial franchise fee for Crave (Item 5) relate to the trademarks (Item 13)?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 1: THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS AND AFFILIATES]
Our agents for service of process are listed in Exhibit G.
Our Parents, Predecessors and Affiliates
We have no predecessor. Our affiliate is Crave WM Franchising LLC, a Wyoming limited liability company formed on June 12, 2024, and headquartered at 159 N. Wolcott St. Suite 133 Casper, WY 82601 ("Affiliate"). Our Affiliate operates as a landlord for franchisees. Our parent is Rincione Investments LLC, a Wyoming limited liability company formed on February 14, 2018, and headquartered at our address ("Parent"). Our Parent does not own or operate a business of the type being franchised and will not guarantee our performance under either the Franchise Agreement or Multi-Unit Development Agreement. Our Parent is not an approved supplier of any product or service you must purchase or lease. Our Parent owns the proprietary marks, as described in Item 13.
Description of Franchise
We offer franchises for the right to establish and operate a quick serve "Crave" restaurant or food truck offering hot dogs, other cased meats, barbeque items, beverages, appetizers, and side dishes ("Restaurant", "Express Restaurant", "Food Truck" or "Franchised Business"). Unless otherwise specified, Express Restaurant will also be referred to as Restaurant. If you choose to, and if permitted by your local ordinances, you may also offer beer and wine from your Restaurant. Express Restaurants and Food Trucks will not offer beer and wine. Restaurant outlets of a certain size (approximately 1,800 to 3,500 square feet) may offer axe throwing lanes. The Franchised Businesses operate under the trade name and mark "Crave" and the additional principal service marks, trademarks, trade names, logos, emblems, and indicia of origin identified in Item 13. These principal marks and all other marks which may be designated by us in the future in writing for use with the System (defined below) are referred to in this Disclosure Document as the "Marks" or "Proprietary Marks".
[Item 5: INITIAL FEES]
ITEM 5 INITIAL FEES
Franchise Agreement: You must pay us an initial franchise fee of $45,000 for the right to establish a single Crave Restaurant under a Franchise Agreement. If you are purchasing your second or third Restaurant, the initial franchise fee will be reduced to $40,000. If you are purchasing your fourth or later Restaurant, the initial franchise fee will be reduced to $35,000.
You must pay us an initial franchise fee of $30,000 for the right to establish a single Crave Food Truck business under a Franchise Agreement. If you already own and operate a Crave Restaurant and desire to own and operate a Food Truck business, the initial franchise fee for the Food Truck will be reduced to $20,000.
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the initial franchise fee grants the franchisee the right to operate a Crave restaurant or food truck using Crave's trademarks. Item 5 details the initial fees required to be paid to Crave Franchising, LLC, while Item 1 discusses that the Franchised Businesses operate under the trade name and mark "Crave" and the additional principal service marks, trademarks, trade names, logos, emblems, and indicia of origin identified in Item 13. These principal marks and all other marks which may be designated by us in the future in writing for use with the System are referred to in this Disclosure Document as the "Marks" or "Proprietary Marks".
Specifically, the initial franchise fee provides the right to establish a single Crave Restaurant for $45,000 or a Crave Food Truck for $30,000 under a Franchise Agreement. These fees are reduced for franchisees purchasing additional restaurants or food trucks. The agreement allows the franchisee to use Crave's trademarks and system to operate their business. This means that by paying the initial franchise fee, a franchisee gains the right to associate their business with the Crave brand and utilize its established trademarks, which can be a significant advantage in attracting customers and building brand recognition.
Item 13 further defines the scope of these trademarks and service marks, which are essential components of the Crave franchise system. The initial fee essentially licenses these trademarks to the franchisee for the duration of the franchise agreement. This license is a key element of the franchise offering, as it allows franchisees to benefit from Crave's brand identity and reputation. Without the right to use these trademarks, the franchisee would not be able to operate a Crave restaurant or food truck.
Therefore, the initial franchise fee is directly tied to the trademarks, as it is the payment that secures the franchisee's right to use the Crave brand and associated intellectual property. This relationship is fundamental to the franchise agreement and is a critical consideration for potential franchisees.