When is the Crave Royalty Fee due, and how is it paid?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
FEES**
| (1) | (2) | (3) | (4) |
|---|---|---|---|
| Fees (1) | Amount | Due Date | Remarks |
| Royalty Fee (2) | Restaurants: 8% of Gross Sales Food Trucks: 8% of Gross Sales Express: 8% of Gross Sales | Payable weekly on Wednesday (unless Wednesday is not a business day, then it is due on the next business day) | Royalty Fees are calculated based on Gross Sales for the previous week ending Sunday. Amounts due will be withdrawn by EFT from your designated bank account. |
| Brand Development (3) Fee | 2% of Gross Sales | Payable together with the Royalty Fee | The Brand Development Fund is described in Item 11. |
| (1) | (2) | (3) | (4) |
|---|---|---|---|
| Fees (1) | Amount |
Source: Item 6 — OTHER FEES (FDD pages 12–19)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the Royalty Fee is payable weekly on Wednesday, unless Wednesday is not a business day, in which case it is due on the next business day. The Royalty Fee is calculated based on Gross Sales for the previous week ending Sunday. For Restaurants, Food Trucks, and Express locations, the royalty fee is 8% of Gross Sales.
The Royalty Fee, along with the Brand Development Fee (2% of Gross Sales for Restaurants only), will be withdrawn from the franchisee's designated bank account by electronic funds transfer (EFT) weekly. This withdrawal occurs on Wednesday and is based on the Franchised Business' Gross Sales for the preceding week ending Sunday. Franchisees must report their Gross Sales to Crave by Tuesday each week for the previous week ending Sunday.
If a franchisee fails to report Gross Sales, Crave may debit the franchisee's account for 120% of the last Royalty Fee and brand development fee (for Restaurants only) that was debited. If the fees debited are less than the fees actually owed, Crave will debit the account for the balance once the true Gross Sales have been determined. Conversely, if the fees debited are greater than the fees actually owed, Crave will credit the excess against the amount debited from the account during the following week. Franchisees should be aware that some states may impose a sales or other tax on the Royalty Fees, which Crave has the right to collect from the franchisee.