What is the range for the estimated total initial investment for a Crave restaurant?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
rs | | (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. | |||
| Grand Opening | $5,000 | As arranged | When Premises | Us |
| Marketing (14) | Lease Signed | |||
| Additional Funds – | $15,000 to $30,000 | As arranged | As arranged | You Determine |
| 3 Months (16) | ||||
| T |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 19–26)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the estimated total initial investment for opening a restaurant ranges from $260,600 to $1,068,500. This substantial range accounts for various factors that can influence startup costs. These costs include the initial franchise fee, lease and utility security deposits, design and architect fees, leasehold improvements, signage, equipment, furniture and fixtures, point-of-sale and computer equipment, business licenses and permits, professional fees, insurance, initial inventory, training expenses, grand opening marketing, and additional funds for the first three months of operation.
The figures provided by Crave are estimates, and the actual costs may vary significantly based on factors such as the location of the restaurant, the size and condition of the premises, and the franchisee's ability to negotiate favorable lease terms. For example, leasehold improvements can vary widely depending on whether the space previously operated as a restaurant or requires extensive modifications. The cost of a beer and wine license is not included in the estimate and can range from under $2,000 to over $100,000 depending on the location and jurisdiction.
Prospective Crave franchisees should carefully review each component of the initial investment and conduct thorough due diligence to determine the likely costs for their specific location. It is also important to note that Crave does not offer financing for any portion of the initial investment. The FDD recommends that franchisees engage an accountant and a franchise attorney to advise them in their evaluation of the franchise offering. Understanding these costs is crucial for planning and securing adequate funding to launch a Crave restaurant successfully.