factual

Does the 'additional funds' estimate for a Crave Cookies franchise include a salary or compensation for the franchisee?

Crave_Cookies Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. This includes any other required expenses you will incur before operations begin and during the initial period of operations, such as payroll, additional inventory, rent, and other operating expenses in excess of income generated by the business. It does not include any salary or compensation for you. In formulating the amount required for additional funds, we relied on the following factors, basis, and experience: the development of a Crave Cookies business by our affiliate, and our general knowledge of the industry.

Source: Item 23 — RECEIPTS (FDD pages 47–194)

What This Means (2025 FDD)

According to Crave Cookies' 2025 Franchise Disclosure Document, the 'additional funds' estimate does not include any salary or compensation for the franchisee. The additional funds cover expenses incurred before operations begin and during the initial period, such as payroll, additional inventory, rent, and other operating expenses exceeding the business's income. Crave Cookies formulated the amount required for additional funds based on the development of a Crave Cookies business by their affiliate and their general knowledge of the industry.

This means that prospective Crave Cookies franchisees need to have sufficient capital to cover their personal living expenses during the initial phase of the business, in addition to the estimated initial investment and additional funds required for the franchise. This is a common practice in franchising, as many new businesses take time to become profitable, and franchisees often need to support themselves financially until the business generates enough income.

Therefore, it is crucial for potential Crave Cookies franchisees to carefully assess their financial situation and ensure they have enough capital to cover both the business expenses and their personal expenses during the startup phase. It would be prudent to create a detailed financial plan that includes a realistic estimate of living expenses and potential revenue, to avoid financial strain during the initial months of operation.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.