factual

What expenses are excluded from the 'additional funds' estimate for a Crave Cookies franchise?

Crave_Cookies Franchise · 2025 FDD

Answer 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 7 — Estimated Initial Investment (FDD pages 15–17)

What This Means (2025 FDD)

According to Crave Cookies' 2025 Franchise Disclosure Document, the estimate for 'additional funds' does not include any salary or compensation for the franchisee. The additional funds, estimated to be between $15,000 and $30,000 for the first 3 months of operation, are intended to cover other required expenses incurred before operations begin and during the initial period. These expenses include payroll, additional inventory, rent, and other operating expenses that exceed the income generated by the business during this startup phase.

This means that prospective Crave Cookies franchisees need to ensure they have sufficient personal funds available to cover their own living expenses during the initial months of operation, in addition to the estimated initial investment and additional funds required for the business. The FDD explicitly states that the additional funds estimate is based on the development of a Crave Cookies business by their affiliate and their general knowledge of the industry.

It is important for potential franchisees to carefully consider their personal financial situation and living expenses when evaluating the overall investment required to start a Crave Cookies franchise. They should also inquire with the franchisor about the assumptions used to develop the additional funds estimate and whether those assumptions are realistic for their specific circumstances and location. Understanding these exclusions and carefully planning for personal expenses is crucial for a smooth and financially stable launch of a Crave Cookies franchise.

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.