What are all the obligations of a Crave franchisee (Item 9) that directly impact the initial investment costs (Item 7)?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
| Obligation | Article or Section in Agreement | Disclosure Document | |
|---|---|---|---|
| Item | |||
| a. Site selection and acquisition/ | FA – Article 2 | Items 8 and 11 | |
| lease | MUDA – Section 3 | ||
| b. Pre-opening purchases/leases | FA – Articles 6, 7 and 8 | Items 6, 7, 8 and 11 | |
| c. Site development and other pre- | FA – Article 2 | Items 8 and 11 | |
| opening requirements | |||
| d. Initial and ongoing training | FA – Article 6 | Items 6, 7 and 11 | |
| n. Insurance | FA – Article 12 | Items 6, 7 and 8 | |
| g. Compliance with standards and | FA – Articles 2, 3, 6, 8, 9, 10, 11 | Items 8, 11 and 14 | |
| policies/ operating manual | and 12 |
| (1) Type of Expenditure | (2) Amount | (3) Method of Payment | (4) When Due | (5) To Whom Payment is to be Made |
|---|---|---|---|---|
| Lease & Utility Security Deposit (3) | $5,000 | As arranged | As arranged | Crave WM Franchising LLC(Landlord) |
| Leasehold | $50,000 to $250,000 | As arranged | As arranged | Contractor |
| Improvements (5)- | ||||
| dependent on site conditions | ||||
| Signage (6) | $3,000 to $30,000 | As arranged | As arranged | Suppliers |
| Equipment, | $100,000 to 150,000 | As arranged | As arranged | Suppliers |
| Furniture and | ||||
| Fixtures (7) | ||||
| Point-of-Sale & Computer Equipment (8) | $1,500 to $5,000 | As arranged | As arranged | Suppliers |
| Business Licenses & Permits (Not Including Beer/Wine (9) License) | $500 to $2500 | As arranged | As arranged | Government Agencies |
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, Item 9 outlines several franchisee obligations that directly correlate with expenses detailed in Item 7's initial investment estimates. These obligations encompass various pre-opening and ongoing requirements, each carrying its own financial implications.
Specifically, site selection and acquisition/lease (9a) will impact the initial investment through lease and utility security deposits, which range around $5,000. Site development and other pre-opening requirements (9c) are directly linked to leasehold improvements, which can range from $50,000 to $250,000 depending on site conditions. Pre-opening purchases/leases (9b) are associated with equipment, furniture, and fixtures, estimated to cost between $100,000 and $150,000, as well as point-of-sale and computer equipment, which ranges from $1,500 to $5,000. Signage (9b) is another pre-opening purchase that can cost between $3,000 and $30,000.
Other obligations that impact initial investment include initial and ongoing training (9d), which may require travel and accommodation expenses, and insurance (9n), for which the franchisee must obtain coverage. Additionally, franchisees are responsible for business licenses and permits, excluding beer/wine licenses, which range from $500 to $2,500. Compliance with standards and policies (9g) may also lead to costs related to meeting specific operational requirements. These obligations collectively represent significant financial considerations for prospective Crave franchisees, influencing the overall initial investment required to establish and operate a franchise.