What costs can the Crave Brand Development Fund be used to cover?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
You understand and acknowledge that we may use up to five percent (5%) of the Fund to prepare and place advertising that is primarily a solicitation of franchise sales.
- 8.3.2 You agree that the Fund may be used to meet any and all costs of maintaining, administering, directing and preparing national and/or regional advertising materials, programs and public relations activities (including, without limitation, the cost of preparing and conducting television, radio, magazine, billboard, newspaper, direct mail and other media programs and activities, for conducting marketing surveys, test marketing, employing advertising agencies to assist therewith, and providing promotional brochures, coupons and other marketing materials to all franchisees of the System).
The Fund shall be held in a non-interest bearing account separate from our other funds, and shall not be used to defray any of our general operating expenses, except that we have the right to reimburse ourselves out of the Fund for the total costs (including indirect costs such as salaries for our employees who devote time and effort to Fund related activities and overhead expenses) of developing, producing and distributing any advertising materials and collecting the Brand Development Fee (including attorneys', auditors' and accountants' fees and other expenses incurred in connection with collecting any Brand Development Fee).
We also reserve the right to use a portion of the Fund to subsidize the cost of presenting refresher training and/or a franchisee meeting.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the Brand Development Fund can be used to cover a wide array of expenses related to advertising, marketing, and public relations. Specifically, the fund may be used for the costs of maintaining, administering, directing, and preparing national and/or regional advertising materials, programs, and public relations activities. This includes the creation and execution of television, radio, magazine, billboard, newspaper, and direct mail campaigns, as well as other media programs and activities.
Additionally, the Brand Development Fund can be allocated to conducting marketing surveys, test marketing initiatives, and employing advertising agencies to assist with these efforts. It also covers the provision of promotional brochures, coupons, and other marketing materials to all franchisees within the Crave system. Crave also has the option to use up to 5% of the fund to prepare and place advertising that is primarily a solicitation of franchise sales.
Crave also has the right to reimburse itself from the fund for the total costs of developing, producing, and distributing any advertising materials and collecting the Brand Development Fee. These costs can include indirect costs such as salaries for employees who work on fund-related activities and overhead expenses, as well as attorneys', auditors', and accountants' fees incurred in connection with collecting the Brand Development Fee. Crave also reserves the right to use a portion of the Brand Development Fund to subsidize the cost of presenting refresher training and/or a franchisee meeting.
Prospective franchisees should note that Crave has sole discretion over the creative concepts, materials, endorsements, and media used in national and regional brand development programs. While the fund is intended to maximize general public recognition and acceptance of the Crave system, there is no guarantee that expenditures from the fund will be proportionate or equivalent to a franchisee's contributions, or that any particular franchisee will directly benefit from the advertising.