What was the amount of marketing fees Crave Cookies collected in 2023?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
Revenues from continuing fees, including royalties, marketing fees and upfront franchise fees. The Company receives a monthly royalty fee equal to 6% and monthly marketing fee equal to 2% of the franchisees weekly gross sales due the following Tuesday. These royalty payments are considered to be variable consideration; however, the Company relies on a narrow exception to the variable consideration criteria where there is a sales-based or usage-based royalty and marketing. Under this exception, the Company recognizes revenue for sales-based royalty and marketing revenue on a monthly basis based on sales reports by their franchisees. There were no royalty or marketing payments in 2021.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 47)
What This Means (2025 FDD)
Based on the 2025 Crave Cookies Franchise Disclosure Document, the document does not explicitly state the total amount of marketing fees collected by Crave Cookies in 2023. However, it does mention how the company receives marketing fees.
The FDD states that Crave Cookies receives a monthly marketing fee equal to 2% of the franchisees' weekly gross sales, which is due the following Tuesday. These marketing payments are considered variable consideration, and Crave Cookies recognizes revenue for sales-based marketing revenue on a monthly basis based on sales reports by their franchisees.
To determine the exact amount of marketing fees collected in 2023, a prospective franchisee should ask Crave Cookies for their audited financial statements or request a detailed breakdown of marketing fee revenue for that year. This information would provide a clearer picture of the marketing fund's financial performance.