What expenses are included in the 'additional funds' estimate for a Crave Cookies franchise?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
ing's System Standards.
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- 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.
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- This estimate assumes you sign a Multi-Unit Development Agreement for three to five franchises.
Source: Item 7 — Estimated Initial Investment (FDD pages 15–17)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, the 'additional funds' estimate covers expenses incurred before operations begin and during the initial period of operations. These expenses include payroll, additional inventory, rent, and other operating expenses that exceed the income generated by the business. The estimate does not include any salary or compensation for the franchisee.
The franchisor, Crave Cookies Franchising, LLC, 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. The estimated range for these additional funds is between $15,000 and $30,000 for the first 3 months of operation.
Prospective Crave Cookies franchisees should carefully consider these additional fund requirements, as they represent a significant portion of the initial investment. It is important to note that these funds are intended to cover shortfalls in income during the startup phase and do not include personal compensation for the franchisee. Understanding the assumptions and factors used to determine this estimate is crucial for accurate financial planning.