What is the total amount of Crave's brand development revenue recognized in 2024?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
4.3 Brand Development Fee
In addition to the Royalty Fee described in Section 4.2 above, you agree to pay to us a Brand Development Fee in an amount equal to two percent (2%) of the Gross Sales of the Franchised Business once the Brand Development Fund is established. Such amount shall be contributed to a Brand
Development Fund maintained by us, as described in Section 8.3 below. The Brand Development Fee is payable to us at the same time and in the same manner as the Royalty Fee.
We may periodically receive allowances, rebates or other payments from approved suppliers based on purchases from such suppliers by our franchisees, and we may elect to contribute such allowances, rebates or other payments to the Brand Development Fund. You understand and acknowledge, however, that any such contribution of these amounts by us to the Brand Development Fund does not in any manner diminish or eliminate your obligation to pay the Brand Development Fee.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
Based on the 2025 Crave FDD, specific details regarding the total brand development revenue recognized in 2024 are not explicitly disclosed. However, the FDD does mention a Brand Development Fee. Franchisees must pay Crave a Brand Development Fee equal to 2% of the Gross Sales of the Franchised Business once the Brand Development Fund is established. This fee is contributed to the Brand Development Fund, which Crave manages. The Brand Development Fee is payable at the same time and in the same manner as the Royalty Fee.
While the FDD outlines the mechanism for collecting the Brand Development Fee, it does not provide a concrete figure for the total revenue generated from this fee in 2024. The FDD also mentions that Crave may receive allowances, rebates, or other payments from approved suppliers based on franchisee purchases, and these may be contributed to the Brand Development Fund. However, the FDD does not specify the amount of such contributions.
To gain a clear understanding of the actual brand development revenue, a prospective franchisee should consider asking Crave for specific figures related to the Brand Development Fund's income and expenses. This would include the total amount collected from franchisees through the Brand Development Fee, any contributions from suppliers, and how these funds were allocated towards marketing and advertising initiatives during 2024. Understanding these figures is essential for evaluating the effectiveness and transparency of Crave's brand development efforts.