factual

What is the brand development fee according to the Crave Franchise Agreement?

Crave Franchise · 2025 FDD

Answer from 2025 FDD Document

Franchisee has no obligation to pay a Brand Development Fee.

Source: Item 23 — RECEIPTS (FDD pages 63–253)

What This Means (2025 FDD)

According to the 2025 Crave Franchise Disclosure Document, franchisees have no obligation to pay a Brand Development Fee. This means that franchisees are not required to contribute to a central marketing fund managed by Crave for the purpose of promoting the brand as a whole.

Typically, franchise systems collect a brand development fee, often calculated as a percentage of gross sales, to fund marketing and advertising initiatives at the national or regional level. The absence of this fee in the Crave franchise agreement could be an attractive feature for prospective franchisees, as it reduces the overall cost of operating the franchise. Franchisees might have more control over their local marketing efforts and budget allocation.

However, it's important to note that Crave may still develop advertising and sales promotion programs, and franchisees are required to participate in these programs according to the terms established by Crave. While franchisees do not have to pay a Brand Development Fee, they are still obligated to participate in marketing programs, and the standards and specifications established by Crave are final and binding. Franchisees are also responsible for local marketing efforts.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.