Do the expenses presented for Crisp & Green include the initial franchise fee or any other startup costs?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
omotional and other miscellaneous lease expenses.
- (7) The expenses presented do not include the initial franchise fee described in Item 5 (or any initial startup or pre-opening costs/fees), or other fees that you will be responsible for pay to the franchisor if you purchase a franchise.
- (8) The other reasonably expected monthly fees payable to us included in these lines are our Technology Fee of $745 per month, the Royalty Fee of 7% of Gross Sales, and the currently ch
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 57–62)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, the expenses presented in the financial performance representation do not include the initial franchise fee or any other initial startup costs. The expenses also exclude other fees that a franchisee will be responsible for paying to Crisp & Green.
The financial performance representation includes expenses such as the cost of goods sold, labor and benefit costs, local advertising costs, and other operating costs. Other operating costs include the costs of supplies, utilities, repair and maintenance, insurance, monthly POS system costs, and bank/credit card charges. Occupancy costs, which include rent, percentage rent, common area maintenance, real estate taxes, and promotional and other miscellaneous lease expenses, are also listed as separate expenses. Depreciation is excluded from operating costs.
Reasonably expected monthly fees payable to Crisp & Green include a Technology Fee of $745 per month, a Royalty Fee of 7% of Gross Sales, and a National Marketing Fee of 2% of Gross Sales. These fees are in addition to the initial franchise fee and startup costs, which are not included in the expenses presented. Therefore, a prospective franchisee should carefully consider these additional costs when evaluating the potential profitability of a Crisp & Green franchise.