Under what conditions can Crave terminate the Brand Development Fund?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
Recognizing the value of uniform marketing, advertising and promotion to the goodwill and public image of the System, you agree that we or our designee shall have the right to establish, maintain and administer a Brand Development Fund (hereinafter referred to as the "Fund") for such national and regional advertising programs as we may deem necessary or appropriate, in our sole discretion, as follows:
- 8.3.1 We shall direct all national and regional brand development programs with sole discretion over the creative concepts, materials, endorsements and media used therein, and the placement and allocation thereof.
You understand and acknowledge that the Fund is intended to maximize general public recognition and acceptance of the System and the Marks for the benefit of all Crave restaurants operating under the System, and that we undertake no obligation in administering the Fund to ensure that expenditures from the Fund are proportionate or equivalent to your contributions made for your Restaurant, or that any particular Restaurant or franchisee benefits directly or pro rata from the placement of any such advertising.
You understand and acknowledge that we may use up to five percent (5%) of the Fund to prepare and place advertising that is primarily a solicitation of franchise sales.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
Based on the 2025 Crave FDD, the document does not explicitly state under what conditions Crave can terminate the Brand Development Fund. The FDD outlines Crave's right to establish, maintain, and administer the Brand Development Fund for national and regional advertising programs as they deem necessary. Crave has sole discretion over the creative concepts, materials, endorsements, and media used in these programs.
The Brand Development Fund is intended to maximize public recognition of the Crave system, and Crave does not guarantee that expenditures from the fund will be proportionate to a franchisee's contributions or that any particular restaurant will directly benefit from the advertising. Crave may use up to 5% of the fund for advertising that solicits franchise sales. The fund can cover costs related to maintaining advertising materials, conducting marketing surveys, and providing promotional materials.
While the FDD details how the Brand Development Fund is managed and used, it does not specify any conditions under which Crave would terminate the fund. A prospective franchisee should seek clarification from Crave regarding the circumstances that could lead to the termination of the Brand Development Fund, as this could impact the marketing and advertising support available to franchisees.