To whom is the lease and utility security deposit paid when opening a Crave Express Restaurant?
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 | Suppli |
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 an Express Restaurant is paid to the Landlord and Utility Companies. The estimated initial investment for this deposit ranges from $4,000 to $15,000. This payment is typically arranged between the franchisee, landlord, and utility companies, and is due as arranged.
This deposit covers both the lease security and any utility deposits required for services like gas, water, and electricity. The actual amount will depend on factors such as the landlord's requirements and the utility companies' policies in the specific location of the Crave Express Restaurant.
Prospective franchisees should budget accordingly for this expense, understanding that it is a necessary part of securing the location and essential services for their business. It's also important to note that while most initial investment expenses are non-refundable, security deposits are generally refundable at the end of the lease term, provided all obligations are met.