factual

What is the geographic scope of a Crave cooperative?

Crave Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. Cooperatives will include all Franchised Businesses in a designated geographic area and may include Crave businesses owned by us and our affiliates. Each Crave business has one vote in the cooperative, but no one Crave business or commonly controlled group of businesses will have more than 25% of the total vote. No cooperatives have been established as of the date of this Disclosure Document.

Source: Item 6 — OTHER FEES (FDD pages 12–19)

What This Means (2025 FDD)

According to Crave's 2025 Franchise Disclosure Document, a cooperative will include all franchised businesses within a designated geographic area. This area may also include Crave businesses that are owned by the company itself or its affiliates. Each Crave business gets one vote in the cooperative, but to prevent any single entity from dominating decisions, no single Crave business or group of businesses under common control can hold more than 25% of the total vote. As of the date of the FDD, no cooperatives have been established.

For a prospective franchisee, this means that if a cooperative is formed in their area, they will be required to join and contribute to its marketing efforts. The money contributed to the cooperative will count toward the franchisee's local marketing obligations. The cooperative's decisions on marketing strategies and spending will directly impact the franchisee's business, so understanding the cooperative's structure and voting rules is important.

Since no cooperatives currently exist, a prospective franchisee should inquire with Crave about the criteria and process for establishing a cooperative in their area. Understanding the potential geographic scope and the influence of corporate-owned stores within the cooperative will be crucial for assessing the potential benefits and drawbacks of this marketing structure.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.