What was the total royalty revenue received by Crave in 2023?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Operating revenues | |||
| Franchise fee revenue | $ 475,000 | $ 972,500 | $ 305,000 |
| Royalties | 328,716 | 366,119 | 277,921 |
| Marketing fund | 46,960 | 52,303 | 39,703 |
| Other income | 15,481 | 7,352 | 5,828 |
| Net operating revenue | 866,156 | 1,398,273 | 628,453 |
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the total royalty revenue received by Crave in 2023 was $366,119. This figure represents the income Crave Franchising, LLC earned from the royalty fees paid by its franchisees during that year. Royalty fees are typically a percentage of gross sales, as detailed elsewhere in the FDD, and are a primary revenue stream for franchisors like Crave.
For a prospective franchisee, this number provides insight into the financial health and revenue generation of Crave. A higher royalty revenue generally indicates a larger and more successful franchise system. It also demonstrates Crave's ability to generate income from its franchisees' operations, which can be a positive sign for the brand's sustainability.
However, it's important to consider this figure in conjunction with other financial data provided in the FDD, such as franchise fee revenue, marketing fund contributions, and overall operating revenues, to get a comprehensive understanding of Crave's financial performance. Additionally, prospective franchisees should compare this royalty revenue with previous years to identify any trends or fluctuations that may impact their investment.