Before signing the Franchise Agreement, does Crave recommend verifying the cost for all licenses and permits required in my jurisdiction?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
and on the location of the Franchised Business. We strongly recommend that you verify the cost for all licenses and permits required in your jurisdiction before signing the Franchise Agreement.
You will offer beer and may offer wine from your Restaurant, unless local law prohibits you from offering beverage alcohol. Since the availability and expenses of acquiring a beer and wine license vary substantially from jurisdiction to jurisdiction, you should consult the appropriate governmental authority concerning the availability of the required license and the associated expenses for your Restaurant before you sign a Franchise Agreement. We have not included the cost of a beer and wine license in our estimate. The cost of a beer and wine license can range from under $2,000 to over $100,000 depending on the location and jurisdiction but can be even higher in some states. We strongly recommend that you verify the cost and availability of a beer and wine license in your jurisdiction before signing the Franchise Agreement, if your Restaurant will offer beer and
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 19–26)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, Crave strongly recommends that prospective franchisees verify the cost of all required licenses and permits in their specific jurisdiction before signing the Franchise Agreement. This recommendation is particularly emphasized for beer and wine licenses, as their availability and costs can vary significantly from one jurisdiction to another. Crave does not include the cost of a beer and wine license in its estimated initial investment, noting that these licenses can range from under $2,000 to over $100,000, or even higher in some states. Express Restaurants, however, do not offer alcohol.
This recommendation is crucial because the costs associated with licenses and permits can substantially impact a franchisee's initial investment and ongoing operational expenses. Failing to accurately estimate these costs could lead to financial strain or an inability to secure the necessary permits to operate legally. The FDD provides an estimated range of $500 to $2,500 for business licenses and permits, not including beer and wine licenses, for a Restaurant and $200 to $1,000 for a Food Truck, but these are only estimates and actual costs may vary.
Prospective Crave franchisees should consult with the appropriate governmental authorities to determine the specific licenses and permits needed for their location and to obtain accurate cost estimates. This due diligence is essential for making an informed decision about investing in a Crave franchise and for ensuring compliance with local regulations. Engaging with local authorities early in the process can also help identify any potential obstacles or delays in obtaining the necessary licenses and permits.