Is Crave required to have the Brand Development Fund statement audited?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Except as expressly provided in this Section 8.3, we assume no direct or indirect liability or obligation to you with respect to the maintenance, direction or administration of the Fund.
We have no obligation to spend any amount on advertising in your area or Designated Territory.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, Crave is not required to have the Brand Development Fund statement audited. However, a statement of the operations of the Fund will be prepared annually by Crave's accountants and made available to franchisees upon written request. The cost of this statement is paid by the Fund.
If Crave chooses to have the Fund audited, it will be at the Fund's expense. This means that while an audit is not mandatory, Crave has the option to conduct one, and the expenses associated with the audit would be covered by the Brand Development Fund itself, rather than by Crave's general operating funds.
This arrangement is fairly common in franchising. While some franchisors commit to a mandatory audit of their brand fund, others retain the flexibility to decide whether an audit is necessary. The key takeaway for a prospective Crave franchisee is to understand how the Brand Development Fund is managed and to regularly review the annual statement of operations, requesting it in writing as needed, to stay informed about the Fund's financial activities.