What does the initial investment estimate for Crave Cookies assume regarding rent payments?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
our initial investment.
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- Our estimates in this table assume you pay one month rent plus a security deposit before you open for business. For this to occur, you would need to negotiate a "free rent" period for the time it takes to build out your business. We expect that you will rent your location. If you choose to purchase real estate instead of renting, your costs will be significantly different.
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- Crave Cookies Franchising, LLC does not require the use of an architect for any improvement project, unless otherwise required by state or local laws or guidelines. All improvements must be in conformity with Crave Cookies Franchising'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.
Source: Item 7 — Estimated Initial Investment (FDD pages 15–17)
What This Means (2025 FDD)
According to Crave Cookies's 2025 Franchise Disclosure Document, the initial investment estimate assumes that franchisees will pay one month's rent plus a security deposit before opening their business. The FDD indicates that to achieve this, franchisees would need to negotiate a "free rent" period to cover the time required to build out the business location. The document also specifies that the estimated initial investment anticipates that franchisees will rent their location, and costs could be significantly different if a franchisee chooses to purchase real estate instead.
The estimated cost for rent and lease security deposits ranges from $2,500 to $10,000, payable via check upon signing the lease. This amount is part of the broader initial investment, which ranges from $327,985 to $704,800. The initial investment also includes expenses such as the initial franchise fee, leasehold improvements, market introduction program, furniture, fixtures, equipment, computer systems, insurance, signage, inventory, new site beginning order, licenses and permits, professional fees, travel, lodging and meals for initial training, and additional funds for the first three months of operation.
Prospective Crave Cookies franchisees should consider the necessity of negotiating a "free rent" period with the landlord to align with the initial investment estimates. If a franchisee cannot secure such an arrangement, they should anticipate higher initial costs. Additionally, franchisees who opt to purchase real estate should be prepared for a substantially different financial outlay than what is presented in the FDD. It is important to note that none of the expenditures in the table will be refundable, except for the lease security deposit and utility deposits, which are typically refundable unless money is owed to the landlord or utility provider.