What are the insufficient funds fees outlined in the Crave Franchise Agreement?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
ill not be considered in the determination. Gross Sales expressly excludes taxes collected from your customers and paid to the appropriate taxing authority and customer refunds or adjustments.
4.7 Insufficient Funds Fees
If there are not sufficient funds in your account to permit us to debit the account for the payments you owe us, you will pay to us an insufficient funds fee equal to One Hundred Dollars ($100). This fee is in addition to interest on any ove
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, if a franchisee's account lacks sufficient funds for payments owed to Crave, the franchisee must pay an insufficient funds fee of $100. This fee is in addition to any interest on overdue amounts and any fees charged by the franchisee's bank.
The implications of this policy are that franchisees must ensure they maintain adequate funds in their accounts to cover all payments to Crave. Failure to do so will result in additional fees and potential financial strain. The $100 fee can quickly add up if insufficient funds issues occur repeatedly.
Furthermore, the Franchise Agreement states that if a franchisee incurs three insufficient funds fees within a 12-month period, Crave has the right to terminate the Franchise Agreement without providing an opportunity to correct the default. This highlights the importance of franchisees managing their finances carefully and avoiding frequent insufficient funds situations to maintain their franchise agreement with Crave.