Who benefits from the national or regional creative materials provided by the Crave Brand Development Fund?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
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- We 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.
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- Cooperatives will include all Franchised Businesses in a designated geographic area and may include Crave businesses owned by us and our 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. No cooperatives have been established as of the date of this Disclosure Document.
Source: Item 6 — OTHER FEES (FDD pages 12–19)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the Brand Development Fund is established to provide national or regional creative materials for the benefit of the entire Crave system. This means that all Crave franchised businesses, including Restaurants, Food Trucks, and Express locations, are intended to benefit from the fund's activities. The purpose of the fund is to enhance the brand's image and recognition through coordinated marketing efforts.
Crave franchisees contribute to this fund through a Brand Development Fee, which is 2% of Gross Sales, payable weekly along with the Royalty Fee. The funds collected are then used to create marketing materials and campaigns that aim to drive business to all Crave locations. This collective approach to marketing is common in franchising, allowing individual franchisees to benefit from larger-scale advertising and promotional activities that would be difficult or impossible to execute on their own.
Crave also mentions the possibility of forming cooperatives that include all Franchised Businesses in a designated geographic area, potentially including Crave businesses owned by Crave itself or 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 2025 Disclosure Document.