Do the estimated initial investment amounts for a Crisp & Green restaurant include costs for the purchase of unimproved land and construction of a free-standing restaurant?

According to Crisp & Green's 2024 Franchise Disclosure Document, the estimated initial investment amounts do not include costs for purchasing unimproved land and constructing a free-standing restaurant. The FDD specifies that the provided estimates assume the landlord delivers a location ready for the franchise with all necessary utilities, lighting, bathrooms, finished ceilings, and walls prepped for painting.

This exclusion is significant because purchasing land and constructing a building can substantially increase the initial investment required to open a Crisp & Green franchise. The document explicitly states that these costs would result in a "significantly greater initial investment." This suggests that the figures provided in Item 7 represent a lower-end estimate, applicable only to franchisees who lease existing spaces and receive them in a condition that requires minimal additional work.

Prospective franchisees should be aware of this exclusion and carefully consider their options for location. While leasing is the more common approach, purchasing land and building a free-standing restaurant could offer long-term benefits, such as increased equity and control over the property. However, it also entails greater financial risk and requires a more substantial upfront investment. Crisp & Green estimates that rent will typically range from $32.46 to $48.96 per square foot per year, including common area maintenance charges or tax expenses. This is based on their experience in or near Minneapolis, Minnesota, and it will vary in other markets.

Therefore, it is crucial for potential Crisp & Green franchisees to conduct thorough due diligence, including researching real estate costs in their target market and consulting with financial advisors to determine the most suitable and financially viable option for their specific circumstances. Understanding the full scope of potential costs, including those not covered in the initial investment estimates, is essential for making an informed decision about investing in a Crisp & Green franchise.