If Crave terminates the Brand Development Fund, how are the remaining monies distributed?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, while the Brand Development Fund is intended to be perpetual, Crave may terminate it. If Crave terminates the Brand Development Fund, all monies in the fund must be expended for advertising or promotional purposes. Any remaining funds can also be returned to contributing restaurants, including those operated by Crave, without interest, based on their respective contributions.
This means that if the Brand Development Fund is terminated, franchisees could potentially receive a portion of their contributions back, although this is not guaranteed. The funds could instead be used for further advertising or promotional activities at Crave's discretion. Franchisees will not receive any interest on their contributions, even if the funds are returned.
This policy ensures that the funds are used for their intended purpose, either through continued marketing efforts or by returning the contributions to those who paid into the fund. However, it's important to note that Crave has significant discretion in deciding how the funds are ultimately used, which could impact the amount, if any, that a franchisee might receive back.