When is the Brand Development Fee payable for a Crave franchise, relative to the Royalty Fee?

According to Crave's 2025 Franchise Disclosure Document, the Brand Development Fee is payable at the same time and in the same manner as the Royalty Fee. The standard Franchise Agreement stipulates that once the Brand Development Fund is established, franchisees must pay a Brand Development Fee equal to 2% of gross sales. This fee is contributed to the Brand Development Fund, which Crave manages. However, an addendum to the Franchise Agreement states that the Brand Development Fee is deleted in its entirety, meaning franchisees have no obligation to pay it.

The Royalty Fee, according to the FDD, is a continuing weekly fee of 8% of Gross Sales. This fee is due on Wednesday of each week, based on the Gross Sales for the preceding week ending Sunday, provided that such day is a business day. If the due date is not a business day, the payment is due on the next business day. Each Royalty Fee payment must be preceded by a royalty report itemizing the Gross Sales for the preceding week ending Sunday. The report must be submitted by Tuesday of each week.

Crave has the right to withdraw funds from the franchisee's designated bank account via electronic funds transfer (EFT) for the Royalty Fee, Brand Development Fee, and any other payments due. If a franchisee fails to provide the required Royalty Report, Crave may debit the account for 120% of the last Royalty Fee and Brand Development Fee (if applicable). If the debited amount is less than what is actually owed, Crave will debit the account for the balance once the true Gross Sales are determined. Conversely, if the debited amount is greater than what is owed, Crave will credit the excess against the amount to be debited the following week. However, since the Brand Development Fee is deleted, this would only apply to the Royalty Fee.