Crepe Delicious Franchise in 2024: Costs, Fee & FDD
Explore the potential of owning a Crepe Delicious franchise, offering a customizable menu and strong support system in the fast-casual dining sector. Learn about the investment, costs, and growth opportunities today!
Table of Contents:
Crepe Delicious is a fast-casual franchise founded in 2004 by Mohamad Fakih, specializing in gourmet crepes. The brand quickly gained popularity by offering customizable sweet and savory crepes, attracting a broad customer base looking for quick and satisfying meals. It stands out in the industry by blending convenience with high-quality ingredients, making it a favorite in high-traffic areas like malls and food courts.
The franchise’s menu includes a wide variety of crepes, smoothies, and fresh fruit bowls, catering to diverse tastes and dietary preferences. Their core customers are individuals seeking fast, delicious meals, often in urban and high-traffic locations. The brand’s flexibility in customization also appeals to those with specific dietary needs.
Crepe Delicious operates over 30 locations across Canada and the U.S., with plans for international expansion. Though smaller than other major fast-casual chains, it’s positioned well in the marketplace, especially in retail-heavy areas. Its continued growth reflects the increasing demand for quick, high-quality dining options.
Franchisees receive comprehensive support, including initial and ongoing training programs that cover both kitchen skills and business operations. The franchise offers robust marketing and supply chain support to ensure consistency and help drive traffic. This approach helps franchisees succeed in a competitive market.
Crepe Delicious Franchise Insights
- Crepe Delicious has expanded rapidly since its founding in 2004, with over 30 locations across Canada and the U.S., and continues to look for growth opportunities in international markets. Its ability to offer a versatile menu of sweet and savory crepes makes it a strong player in the fast-casual dining sector.
- The brand’s ability to cater to various dietary preferences, including gluten-free and vegan options, broadens its appeal to a diverse customer base. Its focus on customization helps build a loyal clientele, as consumers can create a meal that fits their tastes and needs.
- While the brand is relatively small compared to global fast-casual chains, its niche focus on crepes has helped it carve out a loyal following in high-traffic areas such as malls, giving it a competitive edge in a growing sector of the food industry.
How much does it cost to open a Crepe Delicious franchise?
Understanding the potential investment size and capital requirements is crucial when considering opening a Crepe Delicious franchise. These financial commitments, including initial franchise fees, equipment costs, and ongoing operational expenses, impact the feasibility and profitability of the venture. Thoroughly evaluating these factors ensures that potential franchisees are prepared for the financial responsibilities and can make informed decisions about their ability to sustain and grow the business, ultimately contributing to long-term success.
Min & Max Investment
Opening a Crepe Delicious franchise involves several key costs, which are outlined in Item 7 of the Franchise Disclosure Document (FDD). you can see a breakdown of the costs to open a Crepe Delicious below from the most recent Item 7 below:
| Type of Expenditure | Minimum Investment | Maximum Investment |
|---|---|---|
| Initial Franchise Fee | $35,000 | $35,000 |
| Territory Reservation Fee | $1,000 | $10,000 |
| Design Fee | $5,000 | $10,000 |
| Mechanical, Electrical, Plumbing, and Architectural Fees | $5,000 | $25,000 |
| Real Estate Agent Fees | $10,000 | $15,000 |
| Rent, Security Deposit, Utility Deposit | $5,000 | $40,000 |
| Additional Storage Fees | $650 | $15,000 |
| Leasehold Improvements | $125,000 | $350,000 |
| Furniture, Fixtures, and Equipment | $85,000 | $250,000 |
| Initial Inventory and Supplies | $15,000 | $25,000 |
| Insurance | $5,000 | $10,000 |
| Business Licenses and Permits | $7,500 | $20,000 |
| Professional Fees | $5,000 | $10,000 |
| Signage | $10,000 | $25,000 |
| Office Equipment and Supplies | $3,500 | $5,000 |
| Grand Opening Promotion | $2,500 | $5,000 |
| Uniforms | $800 | $1,200 |
| Initial Training Expenses | $2,500 | $10,000 |
| POS Set Up Fee | $2,500 | $7,000 |
| Digital Signage Displays and Set Up, License and Maintenance Fees | $4,500 | $24,400 |
| Miscellaneous Opening Expenses | $10,000 | $25,000 |
| Additional Funds – Three Months | $18,800 | $60,000 |
| Total Estimated Initial Investment | $359,250 | $977,600 |
Item 7 in the Franchise Disclosure Document (FDD) is the “Estimated Initial Investment” section. It outlines the total costs a franchisee can expect to incur when starting a franchise, including the initial franchise fee, equipment, inventory, real estate, and other startup expenses. This section is crucial because it provides potential franchisees with a detailed understanding of the financial commitment required, helping them assess affordability and plan their investment strategy effectively.
Required Capital
To open a Crepe Delicious franchise, the required capital involves both the initial investment costs and a net worth requirement set by Crepe Delicious. Let’s take a closer look below:
- Initial Investment As shown above, the total estimated initial investment ranges from $359,250 and $977,600. This includes all the startup costs such as the franchise fee, real estate, construction, equipment, initial inventory, and additional funds for initial operating expenses. Assuming that you will finance your franchise investment, you should plan to have 20% of the total investment amount in the form of equity (cash) for the investment.
- Liquid Assets It is common for fast-casual franchises to require liquid assets of around $100,000 to $250,000 to ensure the franchisee has enough capital to cover day-to-day expenses and operational costs during the initial period of the business.
- Net Worth A net worth of approximately $500,000 to $1 million is often required for a franchisee to ensure financial stability and the ability to support both the operational costs and any unforeseen challenges.
How much does a Crepe Delicious franchise owner make?
Calculating the salary of a Crepe Delicious franchise owner involves analyzing gross sales to determine total revenue, assessing operational efficiency to understand profit margins, and accounting for franchisor fees and additional expenses such as rent, utilities, and payroll. Effective management of these factors can significantly impact the profitability and financial success of a Crepe Delicious franchise owner. This comprehensive financial analysis helps estimate net profits, from which the owner’s salary can be derived. A clear understanding of these factors ensures accurate salary projections and financial planning for sustainable business operations.
Crepe Delicious Revenue & Gross Sales
Unfortunately, the recent median gross sales for Crepe Delicious are not publicly disclosed. However, based on the franchise model and the typical sales patterns in the fast-casual dining industry, franchises like Crepe Delicious generally see varied sales figures depending on location, market conditions, and customer traffic. Franchisees often experience fluctuations in performance due to seasonal trends and promotional activities, which can significantly impact overall sales.
Which key factors impact the average revenue performance of Crepe Delicious franchisees?
The performance of Crepe Delicious franchisee median gross sales this past year compared to the prior year could have been influenced by several factors. Firstly, the ongoing recovery from the pandemic likely impacted sales, with increased consumer confidence and foot traffic benefiting fast-casual dining establishments. Additionally, improvements in marketing strategies and digital presence, such as delivery and online ordering services, may have contributed to increased sales. Seasonal fluctuations, local economic conditions, and the introduction of new products or promotions also play significant roles. Lastly, competition within the fast-casual segment could have influenced customer preferences, either benefiting or hindering sales growth.
Crepe Delicious Franchise Operational Costs
When considering opening a Crepe Delicious franchise, there are several ongoing operational costs to keep in mind. Key expenses typically include:
- Labor Costs Employee wages, benefits, and payroll taxes for kitchen and front-of-house staff can be significant. Labor costs can vary depending on the location and the number of employees needed for smooth operations.
- Food and Beverage Inventory Regular restocking of ingredients, including fresh produce, crepe fillings, and beverages, is essential. The cost of raw materials will fluctuate based on supplier contracts, seasonal availability, and sales volume.
- Utilities and Rent Leasing a commercial space and paying for utilities like electricity, water, and gas are ongoing expenses that need to be factored into the budget.
- Equipment Maintenance Keeping kitchen equipment in good working condition requires regular servicing, which can be costly over time.
- Insurance and Licensing Franchisees are responsible for various types of insurance, such as liability, property, and worker’s compensation, as well as ensuring that all business licenses and permits are up to date.
- Marketing and Promotions Beyond the franchise’s national advertising fund, local marketing campaigns, and promotional efforts to drive sales may require additional investment.
These ongoing costs should be carefully estimated to determine if the franchise is financially viable and sustainable.
Crepe Delicious Franchise Fees
When considering the ongoing operational fees for a Crepe Delicious franchise, here are some key points to keep in mind:
- Royalty Fee Franchisees are required to pay 6% of their gross revenues as a royalty fee. This fee is an ongoing expense for using the brand, systems, and support provided by the franchisor.
- Advertising Fee An additional 3% of gross revenues must be paid towards local and national advertising efforts. This helps fund marketing campaigns that promote the brand and attract customers to the franchise location.
- Additional Fees While the above fees are the primary ongoing costs, there may also be additional fees for items like technology support, training programs, or any special marketing initiatives.
These ongoing fees are essential for keeping the business aligned with the brand standards and benefiting from its marketing and operational support.
Crepe Delicious Franchise Earnings
Crepe Delicious does not publicly share specific earnings or financial performance data for its franchisees, including median gross sales, which can make estimating earnings challenging. However, in the fast-casual restaurant industry, franchise performance can be influenced by factors such as location, owner involvement, and local market conditions. For an owner-operator, the profit potential is often tied to the volume of customers and effective cost management.
How to Open a Crepe Delicious Franchise
Becoming a Crepe Delicious franchisee is a rigorous process that involves financial scrutiny, extensive training, and thorough evaluation. However, it offers the potential for a lucrative business opportunity backed by a globally recognized brand and comprehensive support system.
The full process for how to open a Crepe Delicious franchise is outlined below:
- Initial Inquiry You or your franchise specialist submits an initial inquiry basic information about your interest and background. You should also conduct thorough research on the franchise, including seeing all of the information available on the Vetted Biz franchise intelligence platform, including access to the most recent Franchise Disclosure Document (FDD).
- Application and Interview Once you’ve reviewed the FDD, you will submit a formal application. This is followed by interviews with the franchise team to assess whether you’re a good fit for the brand and if you have the financial capability to proceed.
- Approval and Agreement If you meet the criteria, you’ll receive approval to become a franchisee. At this point, you’ll sign the franchise agreement, which outlines the rights and responsibilities of both parties.
- Training and Site Selection After signing the agreement, you will undergo training, which can last a few weeks. During this phase, you’ll also begin the process of selecting a location for your Crepe Delicious franchise. The brand may assist in site selection to ensure the best chance for success.
- Build-out and Operations Setup Once the site is selected, the build-out phase begins. This involves constructing the restaurant to meet Crepe Delicious’s specifications, purchasing equipment, and setting up operations.
- Launch and Operations Once your franchise is built and ready to operate, the grand opening is scheduled. From here, ongoing support from Crepe Delicious will help you manage daily operations and marketing efforts.
Pros & Cons
Pros
Established Brand: Crepe Delicious offers a recognizable brand in the fast casual dining sector, with a diverse menu that appeals to a broad range of customers.
Flexible Locations: With a small footprint requirement, Crepe Delicious can operate in various settings, including malls, food courts, and standalone locations, making it adaptable to different markets.
Growing Industry: The fast casual dining sector continues to expand, with consumer demand for healthier, quicker dining options on the rise.
Cons
Dependence on Location: The success of the business heavily depends on the location. Poor site selection can lead to underperformance, which can be a significant risk for new franchisees.
Competition: The fast casual food market is competitive, with similar brands like Crepe Café and Caffè Crema, potentially affecting sales.
Lack of Gross Sales Data: The franchise does not publicly disclose gross sales data for its locations, making it difficult for potential franchisees to assess the financial performance of existing units before investing.
