What was the reported advertising and marketing expense for Crave in the first period?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
g the direct write-off method is not materially different from the results that would have been obtained under the allowance method. No write-offs were made in the reporting period.
Advertising
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the company's advertising and marketing expenses for the year ended December 31, 2022, totaled $25,856. This figure represents the amount Crave spent on advertising and marketing activities during that specific period.
This information is relevant for prospective franchisees as it provides insight into Crave's historical spending on advertising and marketing. While past performance is not indicative of future results, it can offer a general idea of the company's commitment to brand promotion and marketing efforts. Franchisees often benefit from the franchisor's marketing initiatives, which can drive brand awareness and customer traffic.
It's important to note that this figure reflects Crave's expenses at the corporate level and does not include the local marketing expenses that individual franchisees are required to spend. Franchisees are typically obligated to contribute a percentage of their gross sales towards local marketing efforts, as detailed elsewhere in the FDD. Therefore, the total marketing expenditure for the Crave system would be the sum of the corporate advertising expenses and the combined local marketing spending of all franchisees.
Prospective franchisees should consider this information in conjunction with other factors, such as the brand development fund contributions and local marketing requirements, to assess the overall marketing support provided by Crave. Understanding the franchisor's marketing strategy and the associated costs is crucial for making an informed investment decision.