Does Crave's contribution of allowances, rebates, or other payments to the Brand Development Fund diminish a franchisee's obligation to pay the Brand Development Fee?

According to Crave's 2025 Franchise Disclosure Document, a franchisee's obligation to pay the Brand Development Fee is not diminished or eliminated even if Crave contributes allowances, rebates, or other payments to the Brand Development Fund. The franchisee is still responsible for paying the Brand Development Fee, which is set at two percent (2%) of the Gross Sales of the Franchised Business once the Brand Development Fund is established. This fee is paid to Crave at the same time and in the same manner as the Royalty Fee.

This means that even if Crave receives money from suppliers based on franchisee purchases and puts that money into the Brand Development Fund, franchisees must still pay the full 2% Brand Development Fee on their gross sales. This is a standard practice in franchising, where franchisees are typically required to contribute to marketing and advertising efforts to promote the brand as a whole.

For a prospective Crave franchisee, this indicates that contributing to the Brand Development Fund is a non-negotiable financial obligation. Franchisees cannot expect to reduce their Brand Development Fee payments based on any contributions Crave makes to the fund from other sources. It is important for potential franchisees to factor this ongoing expense into their financial projections and business planning.