Crave Hot Dogs & BBQ Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$237,500 - $1,108,500
Franchise Fee
$20,000
Total US Locations
22
Business Summary
Crave offers franchises for quick-serve restaurants or food trucks specializing in hot dogs, other cased meats, barbecue items, beverages, appetizers, and side dishes. Crave restaurants can also offer beer and wine and may include axe throwing lanes if they are a certain size, typically ranging from 1,800 to 3,500 square feet, often located in shopping malls, strip centers, or as free-standing buildings. These restaurants provide dine-in, take-out, delivery, and catering services, and some may have a drive-through. Crave also offers Express Restaurants, which are smaller units located within Walmart stores, needing about 500 to 1,500 square feet, and food trucks that operate in densely populated urban and suburban areas. Crave businesses operate using the franchisor's proprietary recipes, techniques, and trademarks.
Corporate History
Crave Franchising, LLC was formed as a Wyoming limited liability company on February 24, 2018, and began offering franchises in the same month. Its parent company, Rincione Investments LLC, was formed shortly before in February 2018. In September 2019, Crave Franchising, LLC entered a license agreement with Bud's Place Franchising, LLC, allowing Crave menu items to be sold in all Bud's Place company-owned and franchised locations. A later affiliate, Crave WM Franchising LLC, formed in June 2024, operates as a landlord for Crave franchisees.
Financial Overview
Investment Range
$237,500 - $1,108,500
Franchise Fee (Low)
$20,000
Franchise Fee (High)
$45,000
Royalty %
8%
Marketing %
2%
Equipment Costs (Low)
$150,000
Equipment Costs (High)
$860,000
Working Capital
$17,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Going concern qualification
Financial Health Notes
Crave Franchising, LLC's financial statements include an auditor's note raising substantial doubt about the company's ability to continue as a going concern for at least one year after March 24, 2025. This concern is further highlighted in the FDD's special risks section, which indicates that Crave Franchising, LLC's financial condition calls into question its ability to provide services and support to franchisees.
Financing Details
Crave Franchising, LLC does not offer any direct or indirect financing. It also does not guarantee any notes, leases, or other obligations for franchisees.
Performance Metrics
Total US Locations
22
Franchised Units
22
Corporate Units
0
Avg Square Footage
2,000
Franchising Since
2018
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
3
Litigation Summary
Crave Franchising, LLC has three pending lawsuits from franchisees, all filed in 2023 or 2024. One case, filed in January 2024, alleges fraudulent misrepresentation, silent fraud, innocent misrepresentation, and violations of Michigan franchise laws and the FTC Franchise Rule, with franchisees seeking over $75,000 in compensatory and punitive damages, rescission of the agreement, and payment for outstanding lease and loan obligations. In this case, a motion to compel arbitration for one defendant was granted, and another defendant was dismissed, with the case currently stayed. Two other cases, filed in March 2023 and November 2023, both claim fraud and unfair trade practices, seeking to invalidate franchise and purchase agreements, and arbitration clauses. The later case is tied to the former, seeking contribution or indemnification. In both these Louisiana cases, defendants filed motions to dismiss or stay pending arbitration. All three cases have shown inactivity for several months, which could result in dismissal by the defendants.
Bankruptcy History
Crave Franchising, LLC has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew, Crave Franchising, LLC franchisees are automatically granted one additional 10-year renewal term if they meet specific conditions. These include maintaining substantial compliance with their agreement throughout the initial term and being in full compliance at its expiration. Franchisees must sign the then-current franchise agreement and all other ancillary documents, which may have different terms and fees (though fees will not be higher than those for similarly situated franchisees). A $5,000 successor agreement fee is also required. Additionally, franchisees must agree to any required upgrading, remodeling, or redecorating of their location to meet Crave Franchising, LLC's current image and standards, completing these modifications within six months of notice.
Training & Support Program
Franchisor Assistance
Crave Franchising, LLC provides franchisees with pre-opening assistance, including written site selection guidelines, and an on-site evaluation of proposed locations if deemed necessary. The franchisor also supplies standard specifications and layouts for building and furnishing the restaurant, a confidential operations manual, an approved product and supplier list, and initial training for two individuals at their corporate headquarters. Up to two days of on-site opening assistance and training are also provided. For ongoing support, Crave Franchising, LLC conducts periodic visits and evaluations of the business, offers advice and written materials (including updates to the operations manual), and provides mandatory training programs and seminars. Additional on-site training or assistance is available upon request or if deemed necessary, for a fee. The franchisor also administers a Brand Development Fund for national and regional advertising, may set maximum prices for products (where legally permitted), and can hold optional or mandatory franchisee meetings. They also assist with compiling financing documents if requested.
Initial Training Hours
40
Training Location
Franchisor corporate headquarters, an affiliate's Crave business, or other designated location
Ongoing Support
After opening, Crave Franchising, LLC provides ongoing support to franchisees through regular visits and evaluations to ensure quality standards. Franchisees receive advice and written materials, including updates to the operations manual, concerning management, new developments in equipment, food products, and preparation. Mandatory training programs and seminars are conducted for franchisees and their personnel, with additional on-site training available for a fee if requested or deemed necessary. Crave Franchising, LLC administers the Brand Development Fund for national and regional advertising and may designate maximum prices for products where permitted by law. Franchisees may also attend optional or mandatory annual meetings. Crave Franchising, LLC controls all internet, website, and social media activities, providing business listings and access to branded social media pages, and may establish an intranet for operational and marketing materials. They may also form an advisory council to collaborate on system improvements.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Absentee Allowed
Territory Type
Non-Exclusive
Territory Size Requirements
For Crave restaurants, the designated territory is typically a five-mile radius around the approved business location. For Crave food trucks, the territory is defined by a mileage radius around a central point within a municipality, which can be up to 50 miles in rural areas or limited to up to five miles or ten city blocks in suburban or urban areas, depending on population density. Multi-unit development areas are generally described by municipal or county boundaries, or a specific trade area within a municipality.
Staffing Notes
Crave Franchising, LLC requires franchisees to always have a full-time General Manager responsible for the daily operation of the business. This General Manager must possess relevant food service experience, meet Crave Franchising, LLC's educational and business criteria, and successfully complete their training program and all required certifications. While Crave Franchising, LLC recommends, the franchisee owner or a principal is not required to act as the General Manager. At least one certified manager must be on-site during all operating hours. Franchisees are also responsible for hiring any necessary assistant managers and other personnel for efficient operation. All managers must complete Crave Franchising, LLC's training and certification. Furthermore, General Managers and any employees with access to confidential information must sign confidentiality and non-competition agreements.