Does the estimate for additional funds required to operate a Crave Cookies franchise include a salary or compensation for the franchisee?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
-
- 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's 2025 Franchise Disclosure Document, the estimate for additional funds required to operate a franchise 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 that exceed the income generated by the business.
Crave Cookies determined 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 a prospective franchisee needs to have enough capital to cover their personal expenses during the initial phase of the business, in addition to the estimated initial investment.
This is a common practice in franchising, as many franchisors do not include franchisee salary in their initial estimates. Franchisees should carefully consider their personal financial needs and living expenses when planning their initial investment and budget. It is crucial for prospective Crave Cookies franchisees to plan accordingly and secure sufficient funds to support themselves until the business becomes profitable enough to provide a sustainable income.