Can Crave reimburse itself from the Brand Development Fund for costs related to developing advertising materials and collecting the Brand Development Fee?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
The Fund shall be held in a non-interest bearing account separate from our other funds, and shall not be used to defray any of our general operating expenses, except that we have the right to reimburse ourselves out of the Fund for the total costs (including indirect costs such as salaries for our employees who devote time and effort to Fund related activities and overhead expenses) of developing, producing and distributing any advertising materials and collecting the Brand Development Fee (including attorneys', auditors' and accountants' fees and other expenses incurred in connection with collecting any Brand Development Fee).
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, Crave has the right to reimburse itself from the Brand Development Fund for specific costs. This includes the total costs, encompassing both direct and indirect expenses like employee salaries and overhead, associated with developing, producing, and distributing advertising materials.
Additionally, Crave can reimburse itself for the costs incurred in collecting the Brand Development Fee. These costs can include attorneys', auditors', and accountants' fees, as well as other expenses directly related to the collection of the Brand Development Fee.
This arrangement means that while franchisees contribute to the Brand Development Fund, a portion of those funds can be used to cover Crave's expenses in managing the advertising and fee collection processes. Franchisees should be aware that the Brand Development Fund is held in a non-interest bearing account separate from Crave's other funds.