What happens to monies remaining in the Crave Brand Development Fund at the end of the year?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
- 8.3.5 Any monies remaining in the Fund at the end of any year will carry over to the next year.
Although the Fund is intended to be of perpetual duration, we may terminate the Fund.
The Fund shall not be terminated, however, until all monies in the Fund have been expended for advertising or promotional purposes or returned to contributing Restaurants or those operated by us, without interest, on the basis of their respective contributions.
- 8.3.6 If we elect to terminate the Fund, we may, in our sole discretion, reinstate the Fund at any time.
If we so choose to reinstate the Fund, said reinstated Fund shall be operated as described herein.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, any monies remaining in the Brand Development Fund at the end of any year will be carried over to the next year. This means that unspent funds are not distributed back to franchisees or absorbed by Crave, but instead accumulate for future marketing and advertising efforts.
While the Brand Development Fund is intended to be perpetual, Crave retains the right to terminate it. However, the FDD stipulates that the fund cannot be terminated until all monies have been used for advertising or promotional purposes. Alternatively, the remaining funds can be returned to contributing restaurants, including those operated by Crave, without interest, based on their respective contributions.
Crave also has the option to reinstate the Brand Development Fund at any time if it elects to terminate it. If reinstated, the fund will operate under the same terms as previously described in the FDD. This provides Crave with flexibility in managing the fund while ensuring that franchisees' contributions are used for their intended purpose.