Is Crave obligated to spend any amount on advertising in a franchisee's area or Designated Territory?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition to the ongoing marketing contributions set forth herein and, subject to any allocation of your expenditures for local marketing to a Cooperative as described in Section 8.4, you shall spend each quarter throughout the Initial Term an amount equal to one percent (1%) of Gross Sales on marketing and promotion of your Franchised Business in your Designated Territory ("Local Marketing"). Notwithstanding the foregoing, if your Franchised Business participates in a Cooperative, as described in Section 8.4 below, any amount you contribute to the Cooperative will count toward your Local Marketing requirement; provided, however, that in the event your contribution to the Cooperative is less than your Local Marketing requirement, you shall nevertheless spend the difference locally. You shall submit to us, within thirty (30) days of our request, advertising expenditure reports accurately reflecting your Local Marketing expenditures, including verification copies of all marketing and any other information that we require.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, Crave is not obligated to spend a specific amount on advertising in a franchisee's designated territory. However, the franchisee is required to spend a certain amount on local marketing.
Specifically, the franchisee must spend each quarter an amount equal to one percent (1%) of Gross Sales on marketing and promotion of their Franchised Business in their Designated Territory. This is referred to as "Local Marketing". If the franchisee participates in a Cooperative, any amount contributed to the Cooperative will count toward the Local Marketing requirement. However, if the contribution to the Cooperative is less than the Local Marketing requirement, the franchisee must still spend the difference locally.
The franchisee is required to submit advertising expenditure reports accurately reflecting their Local Marketing expenditures, including verification copies of all marketing and any other information that Crave requires, within thirty (30) days of Crave's request.