Who prepares the statement of operations for the Crave Brand Development Fund?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
- 8.3.3 A statement of the operations of the Fund shall be prepared annually by our accountants and shall be made available to you on written request.
The cost of the statement shall be paid by the Fund.
We are not required to have any Fund statement audited, but if we choose to have the Fund audited it will be at the Fund's expense.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the statement of operations for the Brand Development Fund will be prepared annually by Crave's accountants. This statement will be made available to franchisees upon written request. The cost of preparing this statement is to be paid by the Brand Development Fund itself.
Crave is not obligated to have the Brand Development Fund statement audited. However, should Crave choose to have the fund audited, the expense will be borne by the Brand Development Fund.
This arrangement is typical in franchising, where a Brand Development Fund is used for marketing and advertising efforts. Franchisees contribute to the fund, and it is used to promote the brand as a whole. The franchisor typically manages the fund, but providing an annual statement of operations prepared by an accountant ensures transparency and accountability regarding how the funds are being used. Franchisees have the right to request this statement to review the fund's financial activity.