exception

Will a cobranding program implemented by Crave ever increase a franchisee's Royalty Fees, Brand Development Fee, or local marketing expenditure obligations?

Crave Franchise · 2025 FDD

Answer from 2025 FDD Document

We may, from time to time, incorporate into the System programs, products or services which we either develop or otherwise obtain rights to, which are offered and sold under names, trademarks and/or service marks other than the Proprietary Marks and which your Franchised Business, along with other Crave businesses, will be required to offer and sell. This activity, referred to as "cobranding", may involve changes to the Proprietary Marks and may require you to make modifications to your premises and the furniture, fixtures, equipment, signs and trade dress of your Franchised Business. If you receive written notice that we are instituting a cobranding program, you agree promptly to implement that program at your Franchised Business at the earliest commercially reasonable time and to execute any and all instruments required to do so. Under no circumstance will any cobranding program increase your Royalty Fees, Brand Development Fee or local marketing expenditure obligations under this Agreement.

Source: Item 23 — RECEIPTS (FDD pages 63–253)

What This Means (2025 FDD)

According to Crave's 2025 Franchise Disclosure Document, franchisees will be required to offer and sell programs, products, or services that Crave develops or obtains rights to, which are offered under names, trademarks, and service marks other than Crave's own. This is referred to as "cobranding" and may involve changes to Crave's Proprietary Marks and may require franchisees to make modifications to their premises and the furniture, fixtures, equipment, signs, and trade dress of their Franchised Business.

Crave franchisees agree to promptly implement any cobranding program at their Franchised Business at the earliest commercially reasonable time and to execute any and all instruments required to do so.

Importantly, the 2025 FDD specifies that under no circumstance will any cobranding program increase a franchisee's Royalty Fees, Brand Development Fee, or local marketing expenditure obligations under the Franchise Agreement. This provides a level of financial certainty for franchisees as Crave introduces new cobranding initiatives.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.