What rights does Crave have regarding allowances offered by manufacturers, suppliers, and distributors based on Crave franchisee purchases?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
We have the right to collect and retain any and all allowances, rebates, credits, incentives, or benefits (collectively, "Allowances") offered by manufacturers, suppliers, and distributors to you, to us, or to our affiliates based upon your purchases of products and services from manufacturers, suppliers, and distributors. We or our affiliates will have all your right, title, and interest in and to any and all of these Allowances. We or our affiliates may collect and retain any or all these Allowances without restriction (unless otherwise instructed by the manufacturer, supplier, or distributor). We may also choose to contribute these Allowances to the Brand Development Fund, but if we do so it does not reduce or eliminate your obligation to pay the brand development fee. For the fiscal year ended December 31, 2024, neither we nor our affiliates earned revenue from Allowances.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 26–30)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, Crave has the right to collect and retain any allowances, rebates, credits, incentives, or benefits offered by manufacturers, suppliers, and distributors based on a franchisee's purchases of products and services. Crave or its affiliates hold all rights, title, and interest to these allowances. Crave can collect and retain these allowances without restriction unless the manufacturer, supplier, or distributor instructs otherwise.
Crave may choose to contribute these allowances to the Brand Development Fund; however, this contribution does not reduce or eliminate a franchisee's obligation to pay the brand development fee. For the fiscal year ended December 31, 2024, neither Crave nor its affiliates earned revenue from allowances.
This means that as a Crave franchisee, you will not directly benefit from any allowances, rebates, or incentives provided by suppliers based on your purchases. These financial benefits will instead accrue to Crave. While Crave has the option to allocate these allowances to the Brand Development Fund, franchisees are still responsible for paying their brand development fees. This arrangement is not uncommon in franchising, as it allows the franchisor to manage supplier relationships and potentially negotiate better deals for the benefit of the entire system, though the direct financial benefit is not passed on to the franchisee.