If Crave elects to terminate the Brand Development Fund, can it be reinstated?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
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, Crave has the discretion to reinstate the Brand Development Fund at any time, even after it has been terminated. If Crave chooses to reinstate the Fund, it will be operated as described in the FDD. This provides Crave with flexibility in managing the brand's marketing and advertising strategies.
This clause means that while franchisees may experience a period without the Brand Development Fund and its associated national and regional advertising programs, there is a possibility it could return. Crave retains control over this decision, which could be influenced by various factors such as market conditions, the financial health of the franchise system, or strategic shifts in marketing approach.
For a prospective franchisee, this highlights the importance of understanding Crave's overall strategy regarding the Brand Development Fund. While the fund's existence can benefit franchisees through collective advertising efforts, its potential termination and reinstatement introduce an element of uncertainty. It would be prudent for potential franchisees to inquire about Crave's historical practices with the fund and its long-term vision for brand development.