To whom is the initial franchise fee paid when signing the Franchise Agreement for a Crave franchise?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
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| (1) Type of Expenditure | (2) Amount | (3) Method of Payment | (4) When Due | (5) To Whom Payment is to be Made |
|---|---|---|---|---|
| Initial Franchise Fee (1) | $45,000 | Lump Sum | When Franchise Agreement Signed | Us |
| 1 Month (2) | $5,000 to $15,000 | As arranged | As arranged | Landlord |
| Rent – | ||||
| Lease & Utility (3) Security Deposit | $4,000 to $15,000 | As arranged | As arranged | Landlord, Utility Companies |
| Design & Architect (4) Fees | $1,000 to $35,000 | As arranged | As arranged | Designer or Architect |
| Leasehold | $100,000 to $700,000 | As arranged | As arranged | Contractor |
| Improvements (5) | ||||
| dependent on site conditions | ||||
| Signage (6) |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 19–26)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the initial franchise fee is paid to "Us" when the Franchise Agreement is signed. For a standard Crave restaurant franchise, the initial franchise fee is $45,000. However, for a Crave food truck franchise, the initial franchise fee is $30,000. In the context of the FDD, "Us" refers to the franchisor, Crave WM Franchising LLC.
This means that a prospective Crave franchisee must pay the initial franchise fee directly to Crave WM Franchising LLC upon signing the franchise agreement. This fee grants the franchisee the right to operate a Crave franchise under the terms and conditions outlined in the agreement. It's a one-time, non-refundable payment (as stated elsewhere in the FDD) that covers Crave's initial costs of granting the franchise.
It is important to note that the initial franchise fee is just one component of the total initial investment required to open a Crave franchise. Other expenses, such as leasehold improvements, equipment, and initial inventory, must also be considered. The FDD provides estimates for these other expenses, but the actual costs may vary depending on the specific location and circumstances of the franchise.
Prospective franchisees should carefully review Item 7 of the FDD, which provides a detailed breakdown of the estimated initial investment, including the initial franchise fee and other associated costs. It is also advisable to consult with a franchise attorney and financial advisor to fully understand the financial obligations and risks involved in purchasing a Crave franchise.