To whom is the lease and utility security deposit paid 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) | $3,000 to $30,000 | As arranged | As arranged | Suppliers |
| Equipment, | $70,000 to $160,000 | As arranged | As arranged | Suppliers |
| Furniture and | ||||
| Fixtures (7) | ||||
| Point-of-Sale & Computer (8) Equipment | $1,500 to $5,500 | As arranged | As arranged | Suppliers |
| Business Licenses & Permits (Not Including Beer/Wine (9) License) | $500 to $4,000 | As arranged | As arranged | Government Agencies |
| Professional Fees | $1,000 to $3,500 | As arranged | As arranged | Attorney, |
| (10) | Accountant | |||
| Insurance – 1 (11) Month | $1,000 to $3,000 | As arranged | As arranged | Insurance Companies |
| Initial Inventory | $8,000 to $15,000 | As arranged | As arranged | Suppliers |
| Food & Other | ||||
| (12) | ||||
| Items | ||||
| Initial Inventory | $100 to $1,000 | As arranged | As arranged | Suppliers |
| (12) | ||||
| Alcohol |
| (1) Type of Expenditure | (2) Amount | (3) Method of Payment | (4) When Due | (5) To Whom Payment is to be Made |
|---|---|---|---|---|
| Training Expenses | $500 to $1,500 | As arranged | As arranged | Airline, Hotel, |
| (13) | Restaurant, etc. |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 19–26)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the lease and utility security deposit for a Crave restaurant is paid to the landlord and utility companies. The amount of this deposit ranges from $4,000 to $15,000, and the payment is arranged between the franchisee, landlord, and utility companies. This deposit covers both the lease security and any utility security deposits required for services like gas, water, and electricity.
For a Crave WM Franchising LLC location, the lease and utility security deposit is paid to Crave WM Franchising LLC (Landlord). The amount listed in the chart is $5,000, and the payment is arranged between the franchisee and Crave.
Prospective franchisees should note that these security deposits are generally refundable, although this is subject to the terms of the lease agreement and the policies of the utility companies. The FDD advises that the actual amount paid under the lease will depend on factors such as the restaurant's size, allocated charges, negotiation skills, and prevailing rental rates in the area. It is important for franchisees to carefully review the lease terms and understand the conditions for the return of these deposits.