What ongoing expenses does the 'Additional Funds' estimate for a Crave franchise cover?

According to Crave's 2025 Franchise Disclosure Document, the 'Additional Funds' estimate is designed to cover ongoing expenses that a new franchise may face during its initial months of operation. Specifically, this capital is intended to support expenses such as payroll, utilities, rent, Royalty Fees, brand development and other advertising fees, and other start-up fees like a gift card program, particularly if the franchise's sales revenue does not cover these costs during the first three months.

The FDD indicates that Crave's principals relied on their experience in opening and operating restaurants and food truck businesses since 2007 to prepare these figures. The estimate for additional funds ranges from $15,000 to $30,000. This amount is considered sufficient to cover ongoing expenses during the start-up phase, which Crave calculates to be three months.

However, the FDD also emphasizes that this is only an estimate, and there is no guarantee that the stated amount will be sufficient to cover all ongoing expenses. New businesses often experience negative cash flow, and franchisees should be prepared for the possibility of needing additional working capital beyond the initial estimate. It is also important to note that the estimate does not include any debt service. Therefore, prospective Crave franchisees should carefully consider their financial situation and plan for potential shortfalls in revenue during the initial months of operation.