Can Crave contribute allowances to the Brand Development Fund, and if so, does this affect the Crave franchisee's brand development fee obligation?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
We have the right to collect and retain any and all allowances, rebates, credits, incentives, or benefits (collectively, "Allowances") offered by manufacturers, suppliers, and distributors to you, to us, or to our affiliates based upon your purchases of products and services from manufacturers, suppliers, and distributors. We or our affiliates will have all your right, title, and interest in and to any and all of these Allowances. We or our affiliates may collect and retain any or all these Allowances without restriction (unless otherwise instructed by the manufacturer, supplier, or distributor). We may also choose to contribute these Allowances to the Brand Development Fund, but if we do so it does not reduce or eliminate your obligation to pay the brand development fee. For the fiscal year ended December 31, 2024, neither we nor our affiliates earned revenue from Allowances.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 26–30)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, Crave has the option to contribute allowances to the Brand Development Fund. These allowances are essentially rebates, credits, or incentives that Crave or its affiliates may receive from manufacturers, suppliers, and distributors based on franchisee purchases. Crave retains the right to collect and keep these allowances.
However, the FDD clearly states that even if Crave chooses to contribute these allowances to the Brand Development Fund, this contribution does not reduce or eliminate the franchisee's obligation to pay the brand development fee. This means that franchisees are still responsible for paying the full brand development fee, regardless of any contributions Crave makes to the fund from collected allowances.
For the fiscal year ended December 31, 2024, Crave states that neither they nor their affiliates earned revenue from allowances. This information provides transparency regarding the brand's financial practices related to supplier incentives and their impact on franchisee fees.