Can Crave businesses owned by the franchisor or its affiliates be included in Cooperatives?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Cooperatives will include all Franchised Businesses in a designated geographic area and may include Crave businesses owned by us and our affiliates. Each Crave business has one vote in the cooperative, but no one Crave business or commonly controlled group of businesses will have more than 25% of the total vote. No cooperatives have been established as of the date of this Disclosure Document.
Source: Item 6 — OTHER FEES (FDD pages 12–19)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, Crave businesses owned by the franchisor or its affiliates can be included in marketing cooperatives. These cooperatives consist of all franchised businesses within a specific geographic area. This means that company-owned stores could potentially participate alongside franchised locations in regional marketing efforts.
Each Crave business, whether franchised or company-owned, has one vote within the cooperative. However, to prevent any single entity from dominating the cooperative's decisions, no single Crave business or group of businesses under common control can hold more than 25% of the total vote. This ensures that franchisees have a meaningful voice in the cooperative's activities, even with the presence of company-owned stores.
It is important to note that as of the date of the 2025 Disclosure Document, no cooperatives have been established. If a cooperative is formed in the future for the area where a franchisee's business is located, the franchisee is obligated to join. Any money contributed to the cooperative will count toward the franchisee's local marketing requirement, as detailed elsewhere in the FDD.