What is the voting power of each Crave business in a cooperative?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Cooperatives will include all Franchised Businesses in a designated geographic area and may include Crave businesses owned by us and our affiliates. Each Crave business has one vote in the cooperative, but no one Crave business or commonly controlled group of businesses will have more than 25% of the total vote. No cooperatives have been established as of the date of this Disclosure Document.
Source: Item 6 — OTHER FEES (FDD pages 12–19)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, when marketing cooperatives are established in a designated geographic area, each Crave business, including those owned by Crave itself or its affiliates, gets one vote. However, to prevent any single entity from dominating the cooperative's decisions, no single Crave business or group of businesses under common control can hold more than 25% of the total vote. As of the date of the FDD, no cooperatives have been established.
This structure ensures that individual franchisees have a voice in marketing decisions affecting their area, while also preventing larger entities from overpowering the cooperative. The cooperative structure allows franchisees to pool resources and make collaborative decisions about local marketing strategies.
For a prospective franchisee, this means that if a marketing cooperative is formed in their area, they will have the opportunity to participate in marketing decisions and contribute to the cooperative's funds, which will count toward their local marketing requirement of 1% of gross sales. However, the franchisee should also be aware that they will be required to join the cooperative if one is established in their area. Franchisees should inquire about the likelihood of a cooperative forming in their target market and how these cooperatives operate in practice.