To whom is the rent and lease security deposit paid when opening 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 is part of the estimated initial investment for opening a Crave Cookies franchise. The estimated range for this deposit is between $2,500 and $10,000.
This payment is typically due upon signing the lease agreement. The FDD notes that franchisees may be able to negotiate a "free rent" period to offset the initial costs before the business opens. This negotiation would allow time for building out the location before needing to pay rent and the security deposit.
It's important to note that the lease security deposit is usually refundable, provided the franchisee does not owe money to the landlord. This contrasts with other initial expenditures, which the FDD explicitly states are non-refundable. Prospective franchisees should carefully review the lease terms and conditions to understand the specific requirements and refund policies related to the security deposit.