What is the Crave Successor Agreement Fee?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
| (1) | (2) | (3) | (4) |
|---|---|---|---|
| Fees (1) | Amount | Due Date | Remarks |
| Interest | 18% per annum or the highest interest rate allowed by applicable law, whichever is greater | On demand | Interest may be charged on all overdue amounts. Interest accrues from the original due date until payment is received in full. |
| Audit Fee | Cost of audit (estimated to be between $1,000 and $5,000) | When billed | Payable only if we find, after an audit, that you have understated Gross Sales by 2% or more or you have understated any amount you owe to us. You must also pay the understated amount plus interest. |
| Insufficient Funds Fee | $100 per occurrence | On demand, if incurred | Payable if there are insufficient funds in your account to pay fees due to us. If you incur three insufficient funds fees in any 12-month period, we have the right to terminate your Franchise Agreement. |
| Transfer Fee – Transfer Between Owners | $5,000 | With request for approval of transfer | For any transfer of ownership interests or shares between the owners of the franchise, or if you are adding a new owner (as long as majority ownership does not change). |
| Transfer Fee – Franchise Agreement | $5,000 | With request for approval of transfer | No fee charged for a one time transfer from individual(s) to a corporate entity formed for convenience of ownership of the franchise. |
| Transfer Fee – Multi Unit Development Agreement | $5,000 | With request for approval of transfer | No fee charged for a one time transfer from individual(s) to a corporate entity formed for convenience of ownership of the franchise. |
| Successor Agreement Fee | $5,000 | Upon signing of t |
Source: Item 6 — OTHER FEES (FDD pages 12–19)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, a franchisee will need to pay a Successor Agreement Fee of $5,000 upon signing a successor Franchise Agreement. This fee is to be paid to Crave at the time of signing the new agreement.
Successor agreements typically come into play when a franchisee's original franchise term is nearing its end, and they wish to continue operating the franchise under a new agreement. This fee covers Crave's administrative costs and the value of extending the franchise relationship.
Franchisees should factor this fee into their long-term financial planning, as it represents a significant cost associated with renewing their franchise agreement. It is important to note that this fee is uniformly imposed, meaning that all franchisees are subject to the same fee under the same circumstances.