Risk Score
Pending analysis
Investment Range
$162,484 - $294,292
Franchise Fee
$29,500
Total US Locations
74
Business Summary
Graze Craze operates stores specializing in grazing and charcuterie-style cuisine. Graze Craze is an innovator in the food trend known as 'Grazing,' which offers customers flexibility to eat full meals or small portions throughout the day. The business provides diverse meal plans through charcuterie-style grazing boxes, platters, or tables, catering to individual preferences and dietary needs.
Corporate History
Graze Craze Franchising, LLC was established as a Florida limited liability company on March 17, 2021. The company began offering franchises in June 2021. Graze Craze Franchising is majority-owned by UFG Holdings Group, LLC and operates as part of the United Franchise Group, a collection of affiliated franchising-related brands. Graze Craze does not operate company-owned businesses of the type being franchised.
Financial Overview
Investment Range
$162,484 - $294,292
Franchise Fee (Low)
$29,500
Franchise Fee (High)
$49,500
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$94,584
Equipment Costs (High)
$174,542
Working Capital
$30,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Graze Craze Franchising, LLC's financial statements as of June 30, 2024, show significant financial challenges. The company has a negative Member's Equity (Deficit) of $2,777,067, with total liabilities exceeding total assets. Graze Craze reported net losses of $1,473,563 for the year ended June 30, 2024, and $1,305,551 for the year ended June 30, 2023. Additionally, cash flows from operating activities were negative $493,554 for the most recent fiscal year. State addenda for Illinois, New York, and Virginia explicitly note that Graze Craze's financial condition 'calls into question the Franchisor's financial ability to provide services and support to you.' Despite this, management believes the company can continue operations as a going concern for at least the next twelve months.
Financing Details
Graze Craze Franchising, LLC does not offer any direct or indirect financing to its franchisees. The franchisor also does not guarantee any franchisee's notes, leases, or other obligations. Franchisees are responsible for securing their own financing.
Performance Metrics
Total US Locations
74
Franchised Units
70
Corporate Units
4
Avg Square Footage
1,000
Franchising Since
2021
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
4
Litigation Summary
Graze Craze has been involved in several legal matters, primarily through its affiliated brands within the United Franchise Group, and one directly involving Graze Craze. In 1993, an injunctive order was filed against Signarama, an affiliate, concerning alleged false representations of sales and profitability to prospective franchisees. In 1996, Signarama entered a consent order with Maryland related to selling franchises without proper registration. In 2021, another affiliate, The Great Greek Franchising, LLC (TGG), entered a consent order with California for collecting franchise fees before completing pre-opening obligations. Most recently, in March 2022, TGG, Graze Craze Franchising, and UFG Group entered consent orders with California. This action stemmed from alleged violations at a trade show in October 2021, where information regarding franchise offerings was provided without valid registration or exemption, and financial performance representations were made. Graze Craze, TGG, and UFG agreed to cease these violations, pay administrative penalties, and contract with an independent monitor for up to three years.
Bankruptcy History
Graze Craze Franchising, LLC has no bankruptcy information required to be disclosed in its Franchise Disclosure Document. This indicates that neither the franchisor nor its key personnel have a history of bankruptcy to report.
Agreement Terms
Initial Term
35 years
Renewal Term
35 years
Renewal Conditions
To renew their Graze Craze franchise agreement, franchisees must notify the franchisor between 90 and 180 days before the current term expires. They must be in compliance with their agreement and any other agreements with the franchisor or its affiliates. Franchisees are also required to renovate their business to meet the then-current brand standards, sign the franchisor's then-current form of franchise agreement (which may have different terms and fees, but without an additional initial franchise fee or a further renewal term), and execute a general release of claims against the franchisor and its affiliates.
Training & Support Program
Franchisor Assistance
Graze Craze Franchising, LLC provides various forms of assistance to its franchisees. Before opening, the franchisor's affiliate, Franchise Real Estate, assists with site location and lease negotiation, and provides advice on establishing the business. Prototype architectural drawings are loaned, and guidance on fixture and equipment installation is offered. Graze Craze sells an Equipment Package, provides a list of approved suppliers, and inspects the business once construction is complete. New franchisees receive initial training at the corporate headquarters (covering airfare, hotel, and one meal for one person), and 10 days of on-site assistance during the business's launch. Franchisees also receive the Operating Manual and other relevant written materials. After opening, Graze Craze provides details of System alterations and offers periodic business visits for advice on purchasing, new products, equipment use, advertising, administration, pricing, cleanliness, and efficiency. Field representatives can be requested for a fee. Franchisees receive bulletins on sales and service methods, marketing development, and operating procedures, and can get advice on equipment, software, and food service via phone and electronic communication.
Initial Training Hours
59
Training Location
West Palm Beach, Florida
Ongoing Support
After opening, Graze Craze Franchising, LLC provides ongoing support to its franchisees through various channels. This includes periodic visits to the business to offer advice and assistance on operational aspects such as purchasing, new products and services, equipment use, advertising, administration, menu pricing, cleanliness, and efficiency. Franchisees can request a field or marketing representative for special assistance, though this may incur a fee. The franchisor regularly sends bulletins on sales and service methods, marketing development techniques, and business and operating procedures. Additionally, Graze Craze offers advice regarding equipment, computer hardware and software, and food service processes through telephone and electronic communication. Franchisees are also required to participate in web-based training and training video series as developed by the franchisor.
Franchise Requirements
Ideal Candidate Profile
Graze Craze Franchising, LLC seeks franchisees who, along with or through a general manager, are prepared to dedicate their full-time and best efforts to the direct operation of their business. The franchisee or a trained general manager must provide direct on-location supervision at all times. Franchisees must also ensure their employees maintain good customer relations and provide competent, courteous service. While there are no explicit requirements for prior industry, management, sales, or technical experience for the franchisee, the emphasis on full-time and direct operational involvement suggests a hands-on operator.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Hands-On
Territory Type
Non-Exclusive
Territory Size Requirements
Graze Craze territories are defined as a non-exclusive geographic area known as a Delivery Area. The size of this Delivery Area varies based on factors like population and business counts, which are determined using demographic data. The boundaries are set and may be revised periodically using geographic markers such as cities, counties, zip codes, streets, highways, or natural boundaries. While franchisees operate within a non-exclusive Delivery Area, the Franchise Agreement initially grants a 'protected territory' where the franchisor will not operate or grant rights for another Graze Craze store (excluding limited access venues). However, the document also explicitly states that franchisees 'will not receive an exclusive territory' and may face competition from other franchisees, company-owned outlets, or other distribution channels controlled by the franch franchisor.
Staffing Notes
Graze Craze Franchising, LLC requires the franchisee or a trained general manager to provide direct, on-location, full-time supervision of the business. Franchisees are also required to employ at least two individuals who have completed the designated training program at a Certified Training Store, and these individuals must collectively work a minimum of 12 shifts per week (with a shift defined as one hour prior to opening to 3:00 PM or 3:00 PM to one hour prior to closing). Franchisees are solely responsible for hiring, terms of employment, supervision, management, compensation, and training of their employees, and must comply with all employment laws. Employees are considered solely the franchisee's and not the franchisor's. Franchisees must ensure employees maintain good customer relations and sign non-disclosure agreements to protect confidential information.