Is the Crave Brand Development Fund held in an interest-bearing account?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
The Fund shall be held in a non-interest bearing account separate from our other funds, and shall not be used to defray any of our general operating expenses, except that we have the right to reimburse ourselves out of the Fund for the total costs (including indirect costs such as salaries for our employees who devote time and effort to Fund related activities and overhead expenses) of developing, producing and distributing any advertising materials and collecting the Brand Development Fee (including attorneys', auditors' and accountants' fees and other expenses incurred in connection with collecting any Brand Development Fee).
We also reserve the right to use a portion of the Fund to subsidize the cost of presenting refresher training and/or a franchisee meeting.
The Fund and its earnings shall not otherwise inure to our benefit except that any resulting technology and intellectual property shall be deemed our property.
- 8.3.3 A statement of the operations of the Fund shall be prepared annually by our accountants and shall be made available to you on written request.
The cost of the statement shall be paid by the Fund.
We are not required to have any Fund statement audited, but if we choose to have the Fund audited it will be at the Fund's expense.
Except as expressly provided in this Section 8.3, we assume no direct or indirect liability or obligation to you with respect to the maintenance, direction or administration of the Fund.
We have no obligation to spend any amount on advertising in your area or Designated Territory.
- 8.3.4 Restaurants owned by us or our affiliates may, but are not required to, make contributions to the Fund on the same basis as our franchisees.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the Brand Development Fund is held in a non-interest bearing account. This means that any contributions made to the fund by franchisees will not generate interest income.
Crave states that the Brand Development Fund is kept separate from their other funds and will not be used to cover general operating expenses. However, Crave can reimburse itself from the fund for costs associated with developing, producing, and distributing advertising materials, as well as for the costs of collecting the Brand Development Fee. These costs can include indirect expenses like employee salaries and overhead related to fund activities, along with attorney, auditor, and accountant fees.
Any earnings from the Brand Development Fund will not benefit Crave, except that any resulting technology and intellectual property will be owned by Crave. An annual statement of the fund's operations will be prepared by Crave's accountants and made available to franchisees upon written request, with the cost of the statement paid by the fund. While an audit of the fund statement is not required, Crave may choose to have one performed at the fund's expense.
Prospective franchisees should be aware that Crave assumes no direct or indirect liability regarding the fund's maintenance, direction, or administration, and has no obligation to spend any amount on advertising in a franchisee's specific area or designated territory. Restaurants owned by Crave or its affiliates may contribute to the fund on the same basis as franchisees, but are not required to do so.