Crave Hot Dogs
Crave Hot Dogs offers quick-serve hot dogs, barbeque items, and beverages in restaurants or food trucks. Known for its proprietary recipes and options like axe throwing, it operates in the casual dining and street food sectors.
Crave Hot Dogs franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment to begin operation of a Crave restaurant franchise ranges from $260,600 to $1,068,500. For a Crave food truck franchise, the range is from $266,300 to $343,550. The total initial investment for a Crave express restaurant franchise is between $237,500 and $573,500. [p.1]
What is the initial franchise fee?
The initial franchise fee varies based on the number of restaurants you are developing: - $45,000 for the first restaurant, - $40,000 for the second or third restaurant, and - $35,000 for any additional restaurants [p.11]. This isn't specified in the excerpts for cases where multiple units are developed simultaneously under a Multi-Unit Development Agreement; however, it does state that for each additional Franchised Business, 50% of the initial franchise fee is credited toward the next fee, with the balance due upon execution of the Franchise Agreement [p.192].
What are the ongoing royalty and advertising fees?
The franchisee pays a continuing weekly royalty fee of eight percent (8%) of Gross Sales, due on Wednesday of each week based on the previous week's sales. The company expenses costs for advertising as they are incurred, with the right to direct all advertising activities and determine the composition of geographic areas for these activities. [p.77, p.36]
How long is the initial franchise agreement, and can I renew it?
The duration of the initial franchise agreement isn't specified in the excerpts. However, the document does mention that a successor term can be granted under certain conditions [p.91], indicating there's potential for renewal, though not guaranteed.
Can I sell or transfer my franchise, and what does that require?
You can sell or transfer your franchise, but it requires the franchisor's consent [p.238]. The transfer must be approved by providing fully executed transfer documents, and obtaining written consent from the franchisor [p.199]. This restriction is in place to protect the development rights, system, marks, and overall reputation of the brand [p.199].
On what grounds can the franchisor terminate the agreement?
According to [p.238], a franchisor can terminate the franchise agreement prior to its expiration only for good cause, which includes the failure of the franchisee to comply with any lawful provision of the franchise agreement and curing such failure after being given written notice and a reasonable opportunity not exceeding 30 days. [p.241] also states that termination can occur on any grounds available by law.
What financial requirements — net worth and liquid capital — do I need to qualify?
Based on the provided excerpts, there are no explicit financial requirements for net worth or liquid capital stated directly in the FDD. However, [p.239] mentions a condition where if the franchisor's most recent unaudited financial statements show a net worth of less than $100,000, you have the right to request an escrow arrangement. This isn't specified in the excerpts regarding your own net worth or liquid capital requirements.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. You may face competition from other franchisees, outlets owned by the company, and other channels of distribution or competitive brands controlled by them [p.45]. Additionally, your designated territory is non-exclusive due to the possibility of the company establishing restaurants at Non-Traditional Sites within your area [p.42].
What training and ongoing support does the franchisor provide?
The franchisor provides initial mandatory training lasting approximately one week, covering various materials including the Manual, marketing materials, and point-of-sale system operation. This training is conducted at corporate headquarters or a designated location and includes instructors with relevant experience [p.39, p.40]. Additionally, upon reasonable request or if deemed necessary, the franchisor will provide on-site remedial training and assistance for an additional fee, including travel, lodging, and meals costs [p.98].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor can provide financial performance information if there is a reasonable basis for it and if it is included in the Franchise Disclosure Document [p.56]. However, the franchisor does not make any representations about future financial performance of franchises or company-owned outlets, nor do they authorize their employees to make such representations [p.57].
What am I restricted to selling, and where must I buy supplies?
You are required to sell or offer for sale all menu items, food products, merchandise, and other products and services as specified by the franchisor [p.49]. You may have to buy or lease items from the franchisor or a limited group of suppliers designated by them, which might be more expensive than purchasing elsewhere [p.3].