What is the Crave franchisee's responsibility regarding sufficient funds in the account for electronic transfers?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
ments to the Brand Development Fund. You understand and acknowledge, however, that any such contribution of these amounts by us to the Brand Development Fund does not in any manner diminish or eliminate your obligation to pay the Brand Development Fee.
4.4 Payments to Us
By executing this Agreement, you agree that we shall have the right to withdraw funds from your designated bank account by electronic funds transfer ("EFT") in the amount of the Royalty Fee, Brand Development Fee, and any other payments due to us and/or our affiliates. If you do not provide the Royalty Report when required, we may debit your account for one hundred twenty percent (120%) of the last Royalty Fee and Brand Development Fee (if applicable) that we debited. If the Royalty Fee and Brand Development Fee we debit are less than the Royalty Fee and Brand Development Fee you actually owe to us, once we have been able to determine the Franchised Business' true and correct Gross Sales, we will debit your account for the balance on a day we specify. If the Royalty Fee and Brand Development Fee we debit are greater than the Royalty Fee and Brand Development Fee you actually owe, we will credit the excess against the amount we otherwise would debit from your account during the following week. You shall, upon execution of this Agreement or at any time thereafter at our request, execute such documents or forms as we or your bank determine are necessary for usto process EFTsfrom your designated bank account for the payments due hereunder. If payments are not received when due, interest may be charged by us in accordance with Section 4.5 below. Upon written notice to you, you may be required to pay such fees directly to us in lieu of EFT, at our sole discretion.
4.5 Interest on Overdue Amounts
You shall not be entitled to withhold payments due us under this Agreement on grounds of alleged non-performance by us hereunder. Any payment or report not actually received by us on or before its due date shall be deemed overdue. Time is of the essence with respect to all payments to be made by you to us. All unpaid obligations under this Agreement shall bear interest from the date due until paid at the greater of (i) eighteen percent (18%) per annum; or (ii) the maximum rate allowed by applicable law.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, franchisees must ensure they have sufficient funds in their designated bank account to cover electronic fund transfers (EFTs) for payments owed to Crave. These payments include Royalty Fees, Brand Development Fees, and any other amounts due to Crave or its affiliates. If a franchisee fails to provide a Royalty Report when required, Crave may debit the franchisee's account for 120% of the last Royalty Fee and Brand Development Fee debited.
If the initial debit is less than the actual amount owed, Crave will debit the account for the remaining balance once the true Gross Sales are determined. Conversely, if the debit exceeds the amount owed, Crave will credit the excess against the subsequent week's debit. Franchisees are required to execute any documents or forms necessary for Crave to process EFTs from their designated bank account.
If a franchisee's account lacks sufficient funds for a scheduled debit, Crave will charge an insufficient funds fee of $100, in addition to any interest on overdue amounts and fees charged by the franchisee's bank. If a franchisee incurs three insufficient funds fees within a 12-month period, Crave reserves the right to terminate the Franchise Agreement without providing an opportunity to cure the default. Crave may also require franchisees to pay fees directly instead of using EFT, at their sole discretion.