If Crave institutes a cobranding program, what is the franchisee required to do?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
We may, from time to time, incorporate into the System programs, products or services which we either develop or otherwise obtain rights to, which are offered and sold under names, trademarks and/or service marks other than the Proprietary Marks and which your Franchised Business, along with other Crave businesses, will be required to offer and sell. This activity, referred to as "cobranding", may involve changes to the Proprietary Marks and may require you to make modifications to your premises and the furniture, fixtures, equipment, signs and trade dress of your Franchised Business. If you receive written notice that we are instituting a cobranding program, you agree promptly to implement that program at your Franchised Business at the earliest commercially reasonable time and to execute any and all instruments required to do so. Under no circumstance will any cobranding program increase your Royalty Fees, Brand Development Fee or local marketing expenditure obligations under this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, if Crave decides to implement a cobranding program, franchisees are required to promptly implement the program at their franchised business at the earliest commercially reasonable time after receiving written notice. This may involve offering and selling programs, products, or services under names, trademarks, and service marks other than Crave's proprietary marks. Franchisees must also execute any instruments required to implement the cobranding program.
This cobranding activity may also require franchisees to make modifications to their premises, including changes to furniture, fixtures, equipment, signs, and trade dress. This means a franchisee may need to invest in renovations or new equipment to align with the cobranded concept.
It is important to note that Crave states that no cobranding program will increase the franchisee's Royalty Fees, Brand Development Fee, or local marketing expenditure obligations under the Franchise Agreement. This provides some financial reassurance, ensuring that franchisees won't face increased fees directly due to the cobranding initiative. However, franchisees should still carefully evaluate the potential costs associated with any required modifications to their premises to ensure they can maintain profitability.