Is a Crave franchisee required to participate in all advertising and sales promotion programs developed by the franchisor?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
We may from time to time develop and create advertising and sales promotion programs designed to promote and enhance the collective success of all Franchised Businesses operating under the System. You shall participate in all such advertising and sales promotion programs in accordance with the terms and conditions established by us for each program. In all aspects of these programs, including, without limitation, the type, quantity, timing, placement and choice of media, market areas and advertising agencies, the standards and specifications established by us shall be final and binding upon you.
We may, from time to time, incorporate into the System programs, products or services which we either develop or otherwise obtain rights to, which are offered and sold under names, trademarks and/or service marks other than the Proprietary Marks and which your Franchised Business, along with other Crave businesses, will be required to offer and sell. This activity, referred to as "cobranding", may involve changes to the Proprietary Marks and may require you to make modifications to your premises and the furniture, fixtures, equipment, signs and trade dress of your Franchised Business. If you receive written notice that we are instituting a cobranding program, you agree promptly to implement that program at your Franchised Business at the earliest commercially reasonable time and to execute any and all instruments required to do so. Under no circumstance will any cobranding program increase your Royalty Fees, Brand Development Fee or local marketing expenditure obligations under this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, franchisees are required to participate in all advertising and sales promotion programs developed by Crave. The terms and conditions for each program are established by Crave, and the franchisee must adhere to them. Crave has the final say on all aspects of these programs, including the type, quantity, timing, placement, and choice of media, market areas, and advertising agencies.
Crave may also incorporate new programs, products, or services into the system, which may be offered and sold under different trademarks. This "co-branding" activity may require franchisees to make modifications to their premises, furniture, fixtures, equipment, signs, and trade dress. Franchisees are required to implement any co-branding programs at the earliest commercially reasonable time after receiving written notice. However, these co-branding programs will not increase royalty fees, brand development fees, or local marketing expenditure obligations.
This mandatory participation ensures a consistent brand image and marketing strategy across all Crave franchise locations. While franchisees must follow Crave's guidelines, the FDD also mentions the possibility of forming an advisory council comprised of both franchisor and franchisee representatives. This council could potentially influence advertising conducted by the Brand Development Fund and other aspects of the system, although the franchisor retains ultimate decision-making authority. Franchisees should inquire about the specifics of these programs and any potential costs associated with participation.