What is the Crave transfer fee for a transfer between owners?
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 ma |
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 transfer between owners is $5,000. This fee is due when the franchisee requests approval for the transfer. This applies to any transfer of ownership interests or shares between the current owners of the franchise, or if a new owner is added, provided that the majority ownership does not change hands.
This fee covers Crave's administrative costs associated with reviewing and approving the transfer. These costs include legal and accounting work to ensure the new owner meets the brand's standards and that the transfer complies with the franchise agreement. It is important to note that this fee is specifically for transfers between owners or the addition of a new owner without a change in majority ownership.
It is common for franchise systems to charge transfer fees to cover their expenses and to ensure that new owners are properly vetted and trained. The $5,000 fee charged by Crave is within the typical range for franchise transfer fees, which can vary depending on the brand and the complexity of the transfer. Prospective franchisees should factor this fee into their financial planning if they anticipate transferring ownership in the future.
It is important to note the distinction between this type of transfer and a transfer from an individual to a corporate entity. Crave does not charge a fee for a one-time transfer from individual owners to a corporate entity formed for the convenience of ownership, which is a benefit for franchisees looking to structure their business for liability or tax purposes.