What happens if a Crave franchisee fails to report their Gross Sales?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
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 The Royalty Fee and brand development fee (for Restaurants only) will be withdrawn from your designated bank account by electronic funds transfer ("EFT") weekly on Wednesday based on the Franchised Business' Gross Sales for the preceding week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.
Source: Item 6 — OTHER FEES (FDD pages 12–19)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, franchisees are required to report their Gross Sales weekly by each Tuesday for the previous week ending on Sunday. This information is used to calculate the Royalty Fee and brand development fee, which are then withdrawn from the franchisee's designated bank account via electronic funds transfer (EFT) every Wednesday. The reporting is done through the Abreeze Reporting App available through the Clover point-of-sale system.
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 amount of the last Royalty Fee and brand development fee that was debited. This serves as a provisional payment to ensure that Crave receives some compensation while it awaits the accurate sales figures.
Once Crave is able to determine the true Gross Sales, it will reconcile the amounts. If the initial debit was less than what the franchisee actually owed, Crave will debit the account for the remaining balance. Conversely, if the initial debit was more than what was owed, Crave will credit the excess amount against the franchisee's account during the following week's debit. This process ensures that Crave receives the correct Royalty and brand development fees while also providing a mechanism to correct any overpayments or underpayments resulting from the franchisee's failure to report sales figures.