When is the Crave transfer fee for a Multi Unit Development Agreement due?
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 convenie |
Source: Item 6 — OTHER FEES (FDD pages 12–19)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the transfer fee for a Multi Unit Development Agreement is due when you request approval of the transfer. The fee for this transfer is $5,000.
It is important to note that Crave will not charge a transfer fee for a one-time transfer from individual(s) to a corporate entity formed for the convenience of ownership of the franchise. This exception could be beneficial for franchisees who initially establish the agreement under their name but later decide to incorporate their business.
Understanding the specific conditions under which transfer fees are applied is crucial for managing costs and planning for potential changes in ownership structure. Prospective franchisees should carefully consider these fees and discuss any potential transfer scenarios with Crave to fully understand the financial implications.