What is the scope of the other related activities that Crave conducts regarding the operation of the Crave Franchised Business?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition to these activities, we may also establish an intranet through which downloads of operations and marketing materials, exchanges of franchisee email, System discussion forums and Systemwide communications (among other activities) can be done. You may not maintain your own website; otherwise maintain a presence or advertise on the internet or any other mode of electronic commerce in connection with your Franchised Business; establish a link to any website we establish at or from any other website or page; or at any time establish any other website, electronic commerce presence or URL which in whole or in part incorporates the "Crave" name or any names confusingly similar to the Proprietary Marks.
You are not permitted to promote your Franchised Business or use any of the Proprietary Marks in any manner or maintain any business profile on Facebook, Twitter, X, LinkedIn, Instagram, TikTok, YouTube or any other social media and/or networking site without our prior written approval. We will control all social media initiatives. You must comply with our System standards regarding the use of social media in your Franchised Business' operation, including prohibitions on your and the Franchised Business' employees posting or blogging comments about the Franchised Business or the System, other than on a website established or authorized by us ("social media" includes personal blogs, common social networks, professional networks, live-blogging tools, virtual worlds, file, audio and video-sharing sites, and other similar social networking or media sites or tools). We will provide access to branded social media
pages/handles/assets, and you must update these regularly. We reserve the right to conduct collective/national campaigns via local social media on your behalf.
We alone will be, and at all times will remain, the sole owner of the copyrights to all material which appears on any website we establish and maintain, including any and all material you may furnish to us for your "click through" subpage.
Advisory Council: We may, in our discretion, form an advisory council to collaborate with us to improve the System, the products offered by Crave businesses, advertising conducted by the Fund, and any other matters that we deem appropriate. If an advisory council is formed, it will act solely in an advisory capacity, and will not have decision making authority. We will have the right to form, change, merge or dissolve any advisory council. We may develop by-laws for any advisory council.
The Fund is used for national and regional advertising, marketing, publicity, and promotional activity relating to our business. We will determine, in our fully unrestricted discretion, the way the Fund is spent. Some portion of the Fund may be used for creative concept production, marketing surveys, test marketing and related purposes. As stated in Item 8, we may contribute Allowances we receive from approved suppliers to the Fund. If we choose to do this, it does not reduce or eliminate your obligation to pay the brand development fee.
We have the right to direct all advertising activities with sole discretion over creative concepts, materials and media used, as well as their placement and allocation. We also have the right to determine, in our sole discretion, the composition of all geographic and market areas for the implementation of these advertising and promotional activities. The Fund may be used to meet any and all costs of maintaining, administering, directing and preparing national and/or regional advertising materials, programs and public relations activities (including, without limitation, the cost of preparing and conducting television, radio, magazine, billboard, newspaper, direct mail and other media programs and activities, for conducting marketing surveys, test marketing, employing advertising agencies to assist therewith, and providing promotional brochures, coupons and other marketing materials to all franchisees of the System). The Fund is intended to maximize general public recognition in all media of the Proprietary Marks and patronage of Crave Restaurants and we have no obligation to ensure that expenditures of the Fund in or affecting any geographic area are proportionate or equivalent to payments of the brand development fee by franchisees operating in that geographic area, or that any Restaurant will benefit directly or in proportion to the brand development fees paid for the development of advertising and marketing materials or the placement of advertising. We are not obligated to spend any amount on advertising in your area or territory. We may use up to 5% of the Fund for advertising that is principally a solicitation for the sale of franchises.
All contributions to the Cooperative will be maintained and administered in accordance with the documents governing the Cooperative, if any. The Cooperative will be operated solely as a conduit for the collection and expenditure of the Cooperative fees for the purposes outlined above. No advertising or promotional plans or materials may be used by the Cooperative or furnished to its members without first obtaining our approval. Currently there are no Cooperatives in the System. The Cooperative is not required to prepare an annual financial statement.
Website / Intranet: We alone may establish, maintain, modify, or discontinue all internet, world wide web and electronic commerce activities pertaining to the System. We have established one or more websites accessible through one or more uniform resource locators ("URLs"). We will provide your Franchised Business with a listing on our website, and we may, but are not required to, design and provide for the benefit of your Franchised Business a "click through" subpage at our website for the promotion of your Franchised Business. If we establish one or more websites or other modes of electronic commerce and if we provide a "click through" subpage at the website(s) for the promotion of your Franchised Business, you must routinely provide us with updated copy, photographs and news stories about your Franchised Business suitable for posting on your "click through" subpage. We have the right to specify the content, frequency, and procedure you must follow for updating your "click through" subpage.
Any websites or other modes of electronic commerce that we establish or maintain, including but not limited to any mobile applications ("apps") that we may introduce, may – in addition to advertising and promoting the products, programs or services available at Crave Restaurants and Food Trucks – also be devoted in part to offering Crave franchises for sale and be used by us to exploit the electronic commerce rights which we alone have.
We have the right to require you to include certain language in your local marketing, such as "Franchises Available" and our website address and phone number.
Cooperative Marketing: We may designate any geographic area in which two or more Restaurants are located, or in which two or more Food Trucks operate, as a region for purposes of establishing a marketing cooperative ("Cooperative"), or we may approve of the formation of a Cooperative by our franchisees. The members of the Cooperative for any area will consist of all franchised Restaurants and Food Trucks; Restaurants and Food Trucks owned and operated by us, or our affiliates may, but are not required to, participate in a Cooperative. We have the right to dissolve, merge or change the structure of the Cooperatives. Each Cooperative will be organized for the exclusive purposes of administering marketing programs and developing promotional materials for use by the members in local marketing, subject to our approval as described above. If a Cooperative has been established for the geographic area where your Restaurant is located, or where your Food Truck operates, when the Franchise Agreement is signed, or if any Cooperative is established during the term of the Franchise Agreement, you must become a member of the Cooperative. If the Cooperative will operate according to written documents, we must approve of these documents, and a copy of the Cooperative documents applicable to the geographic area in which your Restaurant will be located, or in which your Food Truck will operate, will be provided to you if you request it. You will not have to participate in more than one Cooperative.
The payments you make to a Cooperative may be applied by you toward satisfaction of your local marketing requirement. If the amount you contribute to a Cooperative is less than your local marketing requirement, you must still spend the difference locally. By vote of the members, the members will determine the amount that each member must contribute to the Cooperative. All Crave businesses in the Cooperative, including those owned by us and/or our affiliates, will have the same voting rights as franchisees, but no one Crave business (or commonly controlled group of Crave businesses) will have more than 25% of the total vote.
We estimate that the time from the signing of the Franchise Agreement to the opening of the Food Truck business will be three to six months. It will take 12 weeks to equip, including vehicle wrap, and deliver the Food Truck and upon delivery it will be fully ready to begin operations. Your total timeframe to open may be shorter or longer depending on the time necessary to obtain an approved municipality in which to operate, to obtain financing (if necessary) for the Food Truck, to obtain the permits and licenses for the operation of the Food Truck, and to complete preparation for operating the Food Truck, including purchasing inventory and supplies. You must open the Food Truck business within six months after you sign the Franchise Agreement. If you are not able to open your Food Truck business within this period, we have the right to terminate your Franchise Agreement or we may extend the period of time for you to open. You may not open your Food Truck for business until we have approved you to do so.
If you are a Multi-Unit Developer, you must sign your first Franchise Agreement at the same time you sign the Multi-Unit Development Agreement. The typical length of time between the signing of the Franchise Agreement and the opening of your first Franchised Business is the same as for an individual franchisee. Each additional Restaurant or Food Truck you develop must be opened according to the terms of your Minimum Performance Schedule.
Grand Opening Marketing: You must pay us $5,000 so that we may conduct a marketing campaign on your behalf to announce the grand opening of your Franchised Business. The grand opening marketing campaign will be conducted in the initial 90 days of operation unless we designate a different time period to conduct the grand opening marketing. The grand opening marketing campaign will include giveaways of food samples and other promotions as we designate.
Brand Development Fund: We have established a Brand Development Fund ("Fund") to promote the System, Crave Restaurants and the products and services offered by Crave Restaurants. (Franchise Agreement, Section 8.3.) You are required to participate in the Fund and pay a non-refundable brand development fee to the Fund in an amount equal to 2% of Gross Sales for each Restaurant and/or Food Truck business you own and operate. In the calendar year ended December 31, 2024, 95% of the contributions to the Fund went toward advertising and promotion and 5% toward website maintenance and design.
- If you request it, our assistance with compiling financing documents. (Franchise Agreement, Section 2.7)
Continuing Obligations
Multi-Unit Development Agreement: Under the Multi-Unit Development Agreement:
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- We will review the information regarding potential sites or municipalities that you provide to us to determine whether the sites or municipalities meet our standards and criteria for a Crave Restaurant or Crave Food Truck and, if the site or municipality meets our criteria, approve the site for the Restaurant or the municipality for the Food Truck. (Multi-Unit Development Agreement, Section 8.1.)
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- We will provide you with standard specifications and layouts for building and furnishing Restaurants. (Multi-Unit Development Agreement, Section 8.2.)
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- We will review your site plan and final build-out plans and specifications for conformity to our standards and specifications for a Restaurant. (Multi-Unit Development Agreement, Section 8.3.)
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- We will provide other resources and assistance as may be developed and offered to our multi-unit developers. (Multi-Unit Development Agreement, Section 8.4.)
Franchise Agreement: During the operation of a Franchised Business, we will provide the following assistance and services:
Site Selection: You must assume all costs, liabilities, expenses, and responsibility for locating, obtaining, and developing a site for the Restaurant and for constructing and equipping the Restaurant at the approved site. You will select the site for the Restaurant subject to our approval and using our site selection criteria. Before you lease or purchase the site for the Restaurant, you must locate a site that satisfies our site selection guidelines. If we deem it necessary, we will conduct one on-site evaluation, but before we conduct the evaluation you must submit to us in the form we specify a description of the site, including evidence that the site satisfies our site selection guidelines, together with other information and materials that we may reasonably require, including a letter of intent or other evidence that confirms your favorable prospects for obtaining the site. We have the right to approve deviations from our site selection standards based on the individual factors and components of a particular site.
You must have located and submitted to us, for our review, all information we require regarding the site you propose for your Restaurant no later than 90 days after you have signed the Franchise Agreement. We will have 30 days after we receive all the required information and materials from you to approve or decline the proposed site as the location for your Crave Restaurant. If we do not provide our specific approval of a proposed site, the site is deemed not approved.
We will provide you with our current written
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 32–42)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, Crave engages in several activities related to the operation of its franchised businesses. Crave may establish an intranet for operational and marketing materials, franchisee email exchanges, system discussion forums, and system-wide communications. However, franchisees are restricted from creating their own websites or online presence using the Crave name without prior written approval. Crave maintains control over all social media initiatives, and franchisees must adhere to Crave's system standards for social media use. Crave also reserves the right to conduct national campaigns via local social media on behalf of the franchisee.
Crave may form an advisory council to collaborate on improvements to the system, products, and advertising, though this council would only have an advisory role without decision-making authority. Crave also manages a Brand Development Fund, which is funded by a percentage of gross sales from each restaurant or food truck, specifically 2%. In 2024, 95% of the Brand Development Fund went towards advertising and promotion, while 5% was allocated to website maintenance and design. Crave has sole discretion over advertising activities, including creative concepts and media placement.
Crave may designate geographic areas for marketing cooperatives, requiring franchisees in those areas to participate. These cooperatives focus on local marketing programs and promotional materials, subject to Crave's approval. Crave also provides assistance with site selection, offering site selection criteria and potentially conducting on-site evaluations. For multi-unit developers, Crave reviews potential sites, provides standard specifications for restaurants, and offers other resources and assistance. Additionally, Crave requires a $5,000 payment from franchisees for a grand opening marketing campaign, which includes giveaways and other promotions within the first 90 days of operation.