factual

What is the maximum voting power any single Crave business or commonly controlled group of businesses can have in a cooperative?

Crave Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. 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, when marketing cooperatives are established, each Crave business within the designated geographic area has one vote. However, to prevent any single entity from dominating the cooperative's decisions, no single Crave business or commonly controlled group of businesses can hold more than 25% of the total vote. As of the date of the FDD, no cooperatives have been established.

This structure ensures that marketing decisions are more democratic and representative of the interests of all franchisees within the cooperative. By limiting the voting power of larger or commonly controlled groups, Crave aims to foster a more balanced and equitable environment for all members. This can be particularly beneficial for smaller franchisees who might otherwise have their voices overshadowed by larger entities.

For a prospective franchisee, this means that even if they own multiple Crave locations or are part of a larger ownership group, their voting influence in the cooperative will be capped at 25%. This encourages collaboration and consensus-building among franchisees, as no single entity can unilaterally dictate marketing strategies. It is important to note that the cooperative structure and its specific rules will only come into play if and when a marketing cooperative is established in the franchisee's geographic area.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.