What is the Crave Franchise Agreement section number that discusses the administration of the Brand Development Fund?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
We have established a Brand Development Fund ("Fund") to promote the System, Crave Restaurants and the products and services offered by Crave Restaurants. (Franchise Agreement, Section 8.3.) You are required to participate in the Fund and pay a non-refundable brand development fee to the Fund in an amount equal to 2% of Gross Sales for each Restaurant and/or Food Truck business you own and operate. In the calendar year ended December 31, 2024, 95% of the contributions to the Fund went toward advertising and promotion and 5% toward website maintenance and design.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 32–42)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the Brand Development Fund is discussed in Section 8.3 of the Franchise Agreement. Crave has established this fund to promote the Crave system, Crave restaurants, and the products and services they offer.
As a franchisee, you are required to participate in the Brand Development Fund and must pay a non-refundable brand development fee. This fee is equal to 2% of Gross Sales for each Restaurant and/or Food Truck business that you own and operate. The FDD states that in 2024, 95% of the contributions to the fund were allocated to advertising and promotion, while 5% was used for website maintenance and design.
This means that as a Crave franchisee, you'll need to budget for this ongoing marketing expense. It's important to note that the fund is controlled by Crave, and while its primary purpose is to benefit the system as a whole, Crave has discretion over how the funds are spent. Franchisees should be aware of these financial obligations and how the fund is managed to effectively plan their business operations.