Under what circumstances is the Crave development fee refundable for multi-unit developers?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
. This money is not refundable.
Multi-Unit Development Agreement: If you qualify to develop and operate multiple Crave Franchised Businesses, then you will pay to us a development fee equal to 100% of the initial franchise fee for the first Franchised Business you commit to develop under the Multi-Unit Development Agreement plus 50% of the initial franchise fee for each additional Franchised Business you commit to develop under the Multi-Unit Development Agreement. You may commit to develop any combination of Restaurants, Food Trucks, and Express Restaurants under a Multi-Unit Development Agreement. For example, if you commit to develop three Food Trucks, the development fee is calculated as $30,000 + (2 x $15,000 = $30,000) = $60,000. If you commit to develop three Restaurants, the development fee is calculated as $45,000 + (2 x $20,000 = $40,000) = $85,000. If you commit to develop a minimum of three units in some other combination of Food Trucks and Restaurants, the development fee will be an amount between $60,000 and $85,000. The development fee is fully earned by us when received and is not refundable or credited against any future fees payable by you under any Franchise Agreement or otherwise.
You will sign the Franchise Agreement for the first Franchised Business at the same time you sign the Multi-Unit Development Agreement, and we will apply a portion of the development fee to pay the initial franchise fee for the first Franchised Business in full. For each additional Franchised Business you will develop under the Multi-Unit Development Agreement, we will apply a credit of 50% of the amount of the initial franchise fee for that Franchised Business, and the balance of the initial franchise fee due for that Franchised Business is payable in a lump sum when you sign the Franchise Agreement for that Franchised Business. The development fee is imposed uniformly on all multi-unit developers and is not refundable under any circumstances.
There are no other purchases from or payments to us or any affiliate of ours that you must make before your Franchised Business opens for business.
Source: Item 5 — INITIAL FEES (FDD pages 11–12)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the development fee for multi-unit developers is generally non-refundable. The document states explicitly that the development fee is fully earned upon receipt and will not be refunded or credited against any future fees. This policy applies uniformly to all multi-unit developers.
However, there is an addendum for the state of Maryland that affects the timing of when these fees are collected. For franchisees in Maryland, all development fees and initial payments are deferred until the first franchise under the development agreement opens. This addendum is based on the franchisor's financial condition, as required by the Maryland Securities Commissioner, and mandates a financial assurance.
Therefore, while the development fee itself remains non-refundable, franchisees in Maryland benefit from a deferral of payment until the opening of their first franchise location. This could provide some financial relief during the initial stages of development. Prospective franchisees outside of Maryland should be aware that the standard policy of non-refundability applies to them.