Are Crave-owned restaurants required to contribute to the Brand Development Fund?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
- 8.3.4 Restaurants owned by us or our affiliates may, but are not required to, make contributions to the Fund on the same basis as our franchisees.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, restaurants owned by Crave or its affiliates are not required to contribute to the Brand Development Fund. However, if they do contribute, they will do so on the same basis as Crave franchisees.
The Brand Development Fund is used for national and regional advertising programs that Crave deems necessary or appropriate. Crave has sole discretion over these programs, including the creative concepts, materials, and media used. The fund is intended to maximize recognition of the Crave system for the benefit of all Crave restaurants.
Crave may use up to 5% of the Brand Development Fund to prepare and place advertising that solicits franchise sales. The fund can cover costs related to maintaining advertising materials, conducting marketing surveys, and providing promotional materials to franchisees. Crave will provide an annual statement of the fund's operations, prepared by its accountants, to franchisees upon written request.
Franchisees are required to pay a Brand Development Fee of 2% of gross sales once the Brand Development Fund is established. This fee is payable at the same time and manner as the royalty fee. While company-owned restaurants are not mandated to contribute, franchisees must pay the Brand Development Fee, highlighting a potential difference in financial obligations between franchised and company-owned locations.