When are Crave franchisees required to report their Gross Sales to the franchisor?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
and customer refunds or adjustments.
You must report your Gross Sales to us by Tuesday each week for the previous week ending Sunday. The Royalty Fee and brand development fee (for Restaurants only) will be withdrawn from your designated bank account by electronic funds transfer ("EFT") weekly on Wednesday based on the Franchised Business' Gross Sales for the preceding week ending Sunday. If you do not report the Franchised Business' Gross Sales, we may debit your account for 120% of the last Royalty Fee and brand development fee (for Restaurants only) that we debited. If the fees we debit are less than the fees you actually owe us, once we have been able to determine the true and correct Gross Sales, we will debit your account for the balance on a day we specify. If the fees we debit are greater than the fees you actually owe us, we will credit the excess against the amount we otherwise would debit from your account during the following week.
If any state imposes a sales or other tax on the Royalty Fees, then we have the right to collect this tax from you.
Source: Item 6 — OTHER FEES (FDD pages 12–19)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, franchisees must report their Gross Sales to Crave by Tuesday of each week for the previous week, which ends on Sunday. This weekly reporting is crucial for calculating royalty fees and brand development fees. These fees are then withdrawn from the franchisee's designated bank account via electronic funds transfer (EFT) every Wednesday, based on the Gross Sales reported for the preceding week.
Crave uses a specific definition of "Gross Sales" for royalty calculations, which includes the total selling price of all services and products, all income related to the franchised business, whether in cash or credit, and third-party delivery fees. Gross Sales exclude taxes collected from customers and remitted to the appropriate taxing authority, as well as customer refunds or adjustments. This comprehensive definition ensures that all revenue streams are accounted for when calculating the fees owed to Crave.
If a Crave franchisee fails to report their Gross Sales on time, Crave has the right to debit the franchisee's account for 120% of the last royalty fee and brand development fee that was debited. Once the actual Gross Sales are determined, Crave will either debit the account for any remaining balance owed or credit any excess amount against the following week's debit. This policy incentivizes timely and accurate reporting of Gross Sales, ensuring that Crave receives the correct fees and maintains financial transparency within the franchise system.
Crave franchisees are required to use the Abreeze Reporting App, available through the Clover point-of-sale system, to calculate and report their Gross Sales. This app streamlines the reporting process and ensures that Crave receives the necessary financial information in a standardized format. The use of a designated app also allows Crave to independently access the information monitored by the system, although this does not diminish the franchisee's responsibility to report Gross Sales weekly.