How many votes does each Crave business have in a cooperative?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Cooperatives will include all Franchised Businesses in a designated geographic area and may include Crave businesses owned by us and our affiliates. Each Crave business has one vote in the cooperative, but no one Crave business or commonly controlled group of businesses will have more than 25% of the total vote. No cooperatives have been established as of the date of this Disclosure Document.
Source: Item 6 — OTHER FEES (FDD pages 12–19)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, each Crave business, including those owned by the franchisor and its affiliates, has one vote in a marketing cooperative. These cooperatives consist of all franchised businesses within a specific geographic area. However, to prevent any single entity from dominating the cooperative's decisions, no single Crave business or group of businesses under common control can hold more than 25% of the total vote.
This voting structure ensures that individual franchisees have a voice in marketing decisions affecting their area, while also preventing larger entities from overpowering the cooperative. As of the date of the FDD, no cooperatives have been established. If a cooperative is formed in the franchisee's area, membership is mandatory, and contributions to the cooperative count toward the franchisee's local marketing requirement, which is 1% of gross sales for Restaurants, Food Trucks, and Express locations.
This setup is fairly common in franchising, where marketing cooperatives allow franchisees to pool resources and make decisions collectively about local advertising and promotions. The voting restrictions are designed to protect the interests of smaller franchisees and maintain a level playing field within the cooperative. Prospective franchisees should inquire about the likelihood of a cooperative forming in their area and how it might impact their marketing strategies and budget.