To whom is the rent and lease security deposit paid for a Crave Cookies franchise?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
- FRANCHISE AGREEMENT
| Type of expenditure | Amount | Method of payment | When due | To whom payment is to be made |
|---|---|---|---|---|
| Initial franchise fee (see | $39,500 - $39,500 | Check or wire transfer | Upon signing the franchise agreement | Us |
| Note 1) | ||||
| Rent and Lease Security | $2,500 - $10,000 | Check | Upon signing lease | Landlord |
| Deposit |
Source: Item 7 — Estimated Initial Investment (FDD pages 15–17)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, the rent and lease security deposit is paid to the landlord. This deposit, estimated to be between $2,500 and $10,000, is due upon signing the lease.
Typically, a lease security deposit is held by the landlord to cover any potential damages to the property or unpaid rent during the lease term. The FDD notes that these deposits are usually refundable unless the franchisee owes money to the landlord. This is a standard practice in commercial leasing, providing a safeguard for the landlord against potential financial losses.
Prospective Crave Cookies franchisees should carefully review the lease agreement to understand the specific terms and conditions related to the security deposit, including the circumstances under which it may be withheld. Negotiating favorable lease terms, including a 'free rent' period to offset initial costs, is also advisable, as mentioned in the FDD. Understanding these details is crucial for managing the initial investment and ensuring a smooth start to the franchise operation.