How is the Crave Brand Development Fee calculated?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
FEES**
| (1) | (2) | (3) | (4) |
|---|---|---|---|
| Fees (1) | Amount | Due Date | Remarks |
| Royalty Fee (2) | Restaurants: 8% of Gross Sales Food Trucks: 8% of Gross Sales Express: 8% of Gross Sales | Payable weekly on Wednesday (unless Wednesday is not a business day, then it is due on the next business day) | Royalty Fees are calculated based on Gross Sales for the previous week ending Sunday. Amounts due will be withdrawn by EFT from your designated bank account. |
| Brand Development (3) Fee | 2% of Gross Sales | Payable together with the Royalty Fee | The Brand Development Fund is described in Item 11. |
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 Fee for Restaurants is calculated as 2% of Gross Sales. This fee is payable weekly, along with the Royalty Fee, on Wednesday, unless Wednesday is not a business day, in which case it is due on the next business day. The Brand Development Fund, which this fee contributes to, is further described in Item 11 of the FDD.
The Brand Development Fee is collected via electronic funds transfer (EFT) from the franchisee's designated bank account. This transfer occurs weekly, based on the Gross Sales from the preceding week ending on Sunday. Franchisees must report their Gross Sales to Crave by the Tuesday of each week.
If a franchisee fails to report Gross Sales, Crave has the right to debit the franchisee's account for 120% of the last Royalty Fee and Brand Development Fee debited. If the debited fees are less than what is actually owed, Crave will debit the account for the remaining balance once the true Gross Sales are determined. Conversely, if the debited fees are more than what is owed, Crave will credit the excess amount against the franchisee's account during the following week.