Is a Crave franchisee required to pay a Brand Development Fee?

According to Crave's 2025 Franchise Disclosure Document, a standard franchisee agreement includes a Brand Development Fee. However, the document also states that for some franchisees, this fee is waived. Specifically, Sections 4.3 and 8.3 of the Franchise Agreement, which detail the Brand Development Fee, are deleted in their entirety, meaning that these franchisees have no obligation to pay the Brand Development Fee.

For franchisees who are required to pay it, the Brand Development Fee is initially set at two percent (2%) of the Gross Sales of the Franchised Business. This fee contributes to a Brand Development Fund managed by Crave, which is used for marketing and advertising programs. The Brand Development Fee is payable at the same time and in the same manner as the Royalty Fee.

Crave may also contribute allowances, rebates, or other payments received from approved suppliers to the Brand Development Fund based on franchisee purchases. However, these contributions do not reduce or eliminate the franchisee's obligation to pay the Brand Development Fee. Crave also has the right to withdraw funds via electronic funds transfer (EFT) from the franchisee's bank account for the Brand Development Fee and other payments. If a Royalty Report is not provided when required, Crave may debit the account for 120% of the last Brand Development Fee debited, if applicable.

Prospective franchisees should confirm whether their specific franchise agreement includes the Brand Development Fee or if it has been waived, as this will significantly impact their ongoing costs. Understanding how the Brand Development Fund is managed and utilized is also crucial for assessing the value of this fee.