What labor availability is assumed in the Crave Cookies financial projection?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
This projection assumes that you will:
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- Secure a site with a population density comparable to those of the outlets in the data set,
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- Build and operate the outlet in full compliance with our décor package, menu, and operating procedures,
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- Maintain standard business hours and execute the required grand-opening marketing plan,
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- Experience a stable supply chain, average labor availability, and no significant change in competitive conditions, and
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- Set menu prices consistent with current system averages and limit price increases during the first year to no more than three percent.
Your location or operating choices may differ. For example, outlets in very high-rent urban cores, low-density rural areas, or regions with different labor costs may experience different sales patterns.
Source: Item 19 — FINANCIAL PERFORMANCE PROJECTION (FDD pages 38–40)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, the financial performance projection assumes "average labor availability." This means that the projected sales figures, which range from $615,000 to $1,254,000 for the first year, are based on the assumption that franchisees will not face unusual difficulties in hiring and retaining staff. The FDD emphasizes that locations with different labor costs may experience different sales patterns.
For a prospective Crave Cookies franchisee, this assumption highlights the importance of considering the local labor market when evaluating a potential location. Areas with high competition for workers or higher minimum wages could impact profitability and potentially lead to sales patterns that deviate from the projected range. It is important to note that one outlet came in above the range at $1,285,698, while another came in below the range at $518,996. These figures were treated as outliers and excluded when the range was set.
The FDD also lists other key assumptions that underlie the financial projection, including securing a site with a comparable population density, operating in compliance with the brand's standards, maintaining standard business hours, executing the grand opening marketing plan, and experiencing a stable supply chain. All of these factors, including labor availability, are crucial for achieving the projected sales figures.
Prospective franchisees should investigate the labor market conditions in their target area and factor potential labor costs and availability into their business plan. If labor costs are significantly higher than the average assumed in the projection, or if there are challenges in finding qualified staff, the franchisee may need to adjust their sales expectations accordingly. The FDD indicates that the data supporting the financial performance projection is available upon reasonable request, which could provide further insights into the labor costs and availability experienced by existing Crave Cookies franchisees.