What is the exclusive purpose for which a Crave Cooperative must be organized?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
- 8.4.2 the Cooperative must be organized for the exclusive purpose of administering advertising programs and developing, subject to our approval, standardized promotional materials for the members' use in local advertising within the Cooperative's area;
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, a Cooperative must be organized for the specific purpose of administering advertising programs. This includes developing standardized promotional materials, which are subject to Crave's approval, for use by members in local advertising within the Cooperative's designated area.
This means that if a franchisee is part of a regional marketing cooperative, the funds and activities of that cooperative must be focused solely on advertising and promotional efforts. The cooperative cannot engage in other activities outside of marketing and promotion. Crave retains control over the promotional materials used by the cooperative, ensuring brand consistency.
This requirement ensures that marketing efforts are coordinated and aligned with Crave's overall brand strategy. Franchisees benefit from the collective advertising power of the cooperative, while Crave maintains oversight to protect its brand image and standards. Franchisees need to be aware that their contributions to the Cooperative are specifically for advertising and promotion, and they have a say in how those funds are used within the guidelines set by Crave.