Is a Crave business owned and operated by the franchisor or its affiliates required to participate in the Cooperative?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
You understand and acknowledge that if any Crave businesses owned and operated by us or our affiliates are in the Cooperative's area, such businesses may, but are not required to, participate in the Cooperative;
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, Crave businesses owned and operated by the franchisor or its affiliates are not required to participate in the Cooperative. However, if any Crave businesses owned by Crave or its affiliates are within the Cooperative's area, they have the option to participate.
The Cooperative is formed to administer advertising programs and create standardized promotional materials for local advertising within the Cooperative's designated area. The Cooperative must be organized and governed in a manner approved by Crave, and it must operate according to a timeline that Crave approves.
The Cooperative can establish its own rules and procedures, but Crave must approve them, and they cannot infringe upon the franchisee's rights or obligations under the Franchise Agreement. Franchisees are required to contribute to the Cooperative as determined by the Cooperative members. Each franchised business has one vote, but no franchisee can hold more than 25% of the total vote, regardless of how many Crave businesses they own.