How does Crave administer the Brand Development Fund?

According to Crave's 2025 Franchise Disclosure Document, Crave will establish and administer a Brand Development Fund on behalf of the System to provide national or regional creative materials for the benefit of the System.

The Brand Development Fee is 2% of Gross Sales for Restaurants, and it is payable together with the Royalty Fee. The Royalty Fee for Restaurants, Food Trucks, and Express locations is 8% of Gross Sales. Both the Royalty Fee and the Brand Development Fee are payable weekly on Wednesday, unless Wednesday is not a business day, in which case it is due on the next business day. These fees are calculated based on Gross Sales for the previous week ending Sunday, and amounts due will be withdrawn by EFT from the franchisee's designated bank account.

Crave franchisees are required to report their Gross Sales to Crave by Tuesday each week for the previous week ending Sunday. If a franchisee does not report their Gross Sales, Crave may debit the franchisee's account for 120% of the last Royalty Fee and brand development fee that they debited. If the fees Crave debits are less than the fees the franchisee actually owes, once Crave has been able to determine the true and correct Gross Sales, they will debit the franchisee's account for the balance on a day they specify. If the fees Crave debits are greater than the fees the franchisee actually owes, Crave will credit the excess against the amount they otherwise would debit from the franchisee's account during the following week.

The FDD also mentions Cooperatives, which will include all Franchised Businesses in a designated geographic area and may include Crave businesses owned by Crave and its affiliates. Each Crave business has one vote in the cooperative, but no one Crave business or commonly controlled group of businesses will have more than 25% of the total vote. However, no cooperatives have been established as of the date of the Disclosure Document.