CRS Franchise
Cost, fees, owner earnings, closure rate and litigation for a CRS franchise — pulled from the franchisor's own public FDD (2025), not its sales material.
Disclosure honesty
CRS discloses earnings (Item 19) — but the grade is how honestly. We graded it C.
What their own earnings claim actually says
10 outlets disclosed (5 full-year, 5 half-year). Average gross sales $530,838 (full-year) and $281,385 (half-year). Cherry-picking: only 28% of 36 franchisees disclosed; excludes company-owned outlet and newer franchisees.
What a CRS franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $55,000 | Item 5 — paid up front, before you open |
| Royalty | 7% of gross sales | Item 6 — charged on revenue, not profit |
| Advertising fund | 1% of gross sales | Item 6 — brand marketing, spent at the franchisor's discretion |
| Total recurring fees | 8% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $201,300 – $422,700 | Item 7 — franchisor's own low/high estimate |
Royalty 7% or $1,000/mo minimum (increases per territory). Brand Fund 1% (up to 3%). Tech Fee $400/mo per territory. Multiple other fees (transfer $10K+, liquidated damages 2-yr royalties).
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
CRS system size and owner turnover
| Total outlets | 37 |
| Ceased operations | 0 |
| Terminated by franchisor | 0 |
| Transferred to new owners | 0 |
| Closure rate | 0.0% of outlets |
Zero terminations/transfers in 2024. Rapid expansion (31 new franchises). Fee deferral required in CA, IL, MD, MN, VA suggests franchisor capitalization concerns.
From Item 20 of the FDD 2025. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.
Is CRS worth it? — how it compares to 436 similar franchises
| Ongoing fees | 8% of sales | lower than most (median 8%) |
| Startup cost | from $201,300 | pricier than 63% of peers |
| Disclosure honesty | Grade C | typical for the category |
| Closure rate | 0.0% of outlets | better than most (median 1.5%) |
| Disclosed lawsuits | 0 | fewer than most |
Benchmarked against every other franchises franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a CRS
The franchisor's framing: 10 outlets disclosed (5 full-year, 5 half-year). Average gross sales $530,838 (full-year) … We reconstruct what an owner actually keeps, from their own FDD.
- Reconstructed owner P&L — net take-home after royalty, ad fund, rent, labor & debt
- Break-even timeline + cash-on-cash ROI
- Full fee stack + required-purchase markups
- Decoded real failure / closure rate
- How it ranks vs comparable franchises
- Validation-call playbook — the exact questions to ask
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CRS franchise — frequently asked
- How much does a CRS franchise cost?
- The FDD lists a total initial investment of about $201,300–$422,700, including a $55,000 initial franchise fee.
- How much do CRS franchise owners make?
- 10 outlets disclosed (5 full-year, 5 half-year). Average gross sales $530,838 (full-year) and $281,385 (half-year). Cherry-picking: only 28% of 36 franchisees disclosed; excludes company-owned outlet and newer franchisees. We grade this disclosure C for honesty.
- What are the CRS franchise fees?
- CRS' FDD discloses a $55,000 initial franchise fee, a 7% royalty on gross sales, a 1% advertising-fund contribution, for roughly 8% of gross sales in recurring fees before rent, labor, or debt service. Royalty 7% or $1,000/mo minimum (increases per territory). Brand Fund 1% (up to 3%). Tech Fee $400/mo per territory. Multiple other fees (transfer $10K+, liquidated damages 2-yr royalties).
- What is the CRS franchise profit margin?
- CRS does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: 10 outlets disclosed (5 full-year, 5 half-year). Average gross sales $530,838 (full-year) and $281,385 (half-year). Cherry-picking: only 28% of 36 franchisees disclosed; excludes company-owned outlet and newer franchisees. Recurring fees alone take about 8% of gross sales, before rent, labor, food or debt service. Margin has to be reconstructed from the disclosure, not read off it.
- What is the CRS franchise failure rate?
- Zero terminations/transfers in 2024. Rapid expansion (31 new franchises). Fee deferral required in CA, IL, MD, MN, VA suggests franchisor capitalization concerns.
- How many CRS locations are there?
- CRS' FDD reports 37 total outlets, with 0 that ceased operations in the most recent reporting year and 0 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does CRS have complaints or lawsuits?
- CRS discloses no material litigation in Item 3 of the filing we reviewed. That's a positive signal, though it covers only what the franchisor is required to report.
- Is a CRS franchise worth it?
- It depends on the numbers, not the pitch. CRS scores C on disclosure honesty, carries about 8% of sales in ongoing fees. Get the real owner take-home before you sign.
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Compare CRS to similar franchises
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Source: MN CARDS 34196-202505-11 (Clean FDD 2025). FranchiseValidate is independent and not affiliated with CRS or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.