How often must the local marketing funds for a Crave franchise be spent?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
| (1) | (2) | (3) | (4) |
|---|---|---|---|
| Fees (1) | Amount | Due Date | Remarks |
| Local Marketing | Restaurants: 1% of Gross Sales Food Trucks: 1% of Gross Sales Express: 1% of Gross Sales | Must be spent on a quarterly basis | Payable to your local marketing suppliers. Any marketing you wish to use must first be approved by us. |
| Cooperative (4) Marketing | As determined by the members | As determined by the members | If a marketing cooperative is formed for the geographic area where your Franchised Business is located, you must join the cooperative. Any money you contribute to a cooperative will count toward your local marketing requirement. |
Source: Item 6 — OTHER FEES (FDD pages 12–19)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, franchisees are required to spend their local marketing funds on a quarterly basis. The amount required for local marketing is 1% of Gross Sales for Restaurants, Food Trucks, and Express locations. These funds are payable to the franchisee's local marketing suppliers.
Crave requires that any marketing materials a franchisee intends to use must first be approved by them. This suggests that while franchisees have some autonomy in local marketing, Crave maintains control over brand consistency and marketing message.
If a marketing cooperative is formed in the franchisee's geographic area, the franchisee must join it. Any money contributed to the cooperative will count toward the local marketing requirement. This provides an alternative avenue for fulfilling the local marketing obligation, potentially offering benefits of scale and coordinated marketing efforts within a region.