What is the Crave insufficient funds fee per occurrence?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
| Fees (1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Insufficient Funds Fee | $100 per occurrence | On demand, if incurred | Payable if there are insufficient funds in your account to pay fees due to us. If you incur three insufficient funds fees in any 12-month period, we have the right to terminate your Franchise Agreement. |
Source: Item 6 — OTHER FEES (FDD pages 12–19)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, franchisees will be charged an insufficient funds fee of $100 per occurrence. This fee is due on demand if the franchisee's account lacks sufficient funds to cover fees owed to Crave.
This fee is fairly standard in franchising and business operations. It is designed to cover the administrative costs and potential losses Crave incurs when a franchisee's payment is rejected due to insufficient funds. Franchisees should ensure they maintain adequate funds in their accounts to avoid this fee.
Notably, the FDD states that if a Crave franchisee incurs three insufficient funds fees within a 12-month period, Crave reserves the right to terminate the Franchise Agreement. This highlights the importance of franchisees managing their finances responsibly and ensuring timely payments to Crave to avoid potential termination of their franchise agreement.