What were the initial franchise fees billed by Crave for the year ended December 31, 2023?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
ng income consists of contractual franchise royalties based on a percentage of monthly sales which are recognized as revenue in the month earned as well as revenue from other contractual agreements.
Initial franchise fees are recognized as revenue once substantially all of the initial services of the Company required by franchise agreement have been performed and no other material conditions or obligations r
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the initial franchise fees billed for the year ended December 31, 2023, were $725,000. This figure represents the total amount Crave invoiced to new franchisees for the initial right to operate a Crave franchise during that year. It's important to note that this is the 'billed' amount, which may differ from the actual revenue recognized due to accounting practices.
For a prospective franchisee, this information provides insight into the scale of Crave's franchise operations and revenue generation from initial franchise fees. It demonstrates how much Crave was able to bill in initial franchise fees during that year. This number can be an indicator of the franchise's growth and the demand for new Crave locations.
It is important to understand how Crave recognizes initial franchise fees as revenue. According to the FDD, initial franchise fees are recognized as revenue once substantially all of the initial services required by the franchise agreement have been performed. This means that while $725,000 was billed in 2023, the actual revenue recognized might be spread out over time as Crave fulfills its obligations to the franchisees. A prospective franchisee should inquire about the number of franchises sold in 2023 to better understand the average initial franchise fee per location.