Does Crave reserve the right to receive rebates from approved suppliers based on franchisee purchases?

According to Crave's 2025 Franchise Disclosure Document, Crave may receive payments from approved suppliers in the form of rebates, based on the suppliers' sales to franchisees. Crave reserves the right to direct that any supplier rebates, refunds, advertising allowances, or other consideration resulting from a franchisee's purchases of non-proprietary goods, services, or equipment be paid to Crave or an affiliate they designate. If Crave exercises this right, the franchisee acknowledges that they will not assert any interest in these funds.

This means that while franchisees are responsible for purchasing goods, services, and equipment to operate their Crave business, any rebates or other financial benefits negotiated with suppliers may be directed to Crave rather than the franchisee. This could impact the franchisee's profitability, as they would not directly benefit from these supplier incentives.

This practice is not uncommon in franchising, as it allows the franchisor to potentially negotiate better deals with suppliers based on the collective purchasing power of the entire franchise system. However, it's important for prospective Crave franchisees to understand that they will not directly receive these rebates and should factor this into their financial projections. Franchisees should inquire about the typical amount of these rebates and how Crave uses these funds to benefit the franchise system as a whole.