What is the range for leasehold improvements costs for a Crave franchise, and is it dependent on any factors?
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 estimated cost for leasehold improvements for a Crave restaurant ranges from $50,000 to $250,000 for a Restaurant and $100,000 to $700,000 for a Food Truck. These costs are paid to a contractor and are due as arranged. The cost is dependent on site conditions.
The FDD specifies several factors that can influence these costs. These include the size and configuration of the premises, pre-construction costs such as demolition and removal of existing fixtures, and the cost of materials and labor. The cost of materials and labor can vary based on geography, location, and whether union labor is required for the build-out. The condition of the space before taking possession also plays a role; for example, costs are lower if the space previously operated as a restaurant and is being converted, versus building out a "vanilla box" space.
Prospective Crave franchisees should carefully consider these factors and obtain detailed estimates for their specific location to accurately budget for leasehold improvements. The FDD also notes that these estimates do not include any tenant improvement allowance that may be negotiated with the landlord. Furthermore, Crave requires franchisees to use their designated supplier as the contractor for the build-out, and approved supplier for the design and build-out of the axe lanes if the outlet has axe throwing, which could impact costs and should be factored into the overall budget.
Understanding these variables is crucial, as leasehold improvements represent a significant portion of the initial investment. Franchisees should discuss these factors with Crave and potential contractors to develop a realistic budget for their specific location and restaurant format (Restaurant or Food Truck).