Is the 2% of daily gross sales dedicated to marketing for the Crave Cookies location?

According to Crave Cookies' 2025 Franchise Disclosure Document, franchisees must contribute 2% of their gross sales per week to the Marketing Fund. The FDD specifies that this 2% of daily gross sales, paid into the marketing fund, is used for the franchisee's territory and is dedicated entirely to marketing for their location. However, Crave Cookies is not obligated to spend any specific amount on advertising in the franchisee's area or territory. This means that while the funds are earmarked for marketing in the franchisee's territory, the franchisor has discretion over how those funds are spent.

In addition to the Marketing Fund, Crave Cookies may establish market advertising and promotional cooperative funds ("Market Cooperative") in any geographical areas. If a Market Cooperative is established for the area encompassing the franchisee's location, the franchisee must become a member. The majority vote of the Market Cooperative will determine the dues to be paid by members, but not less than 1% and not more than 5% of Gross Sales.

Crave Cookies maintains control over the Market Cooperative, including governance, purpose, and approval of advertising materials. The franchisor can also terminate any Market Cooperative, with any remaining funds transferred to the Marketing Fund. This structure gives Crave Cookies significant influence over both the Marketing Fund and any Market Cooperatives, ensuring brand consistency and control over marketing efforts. Prospective franchisees should be aware that while they contribute to these funds, the franchisor ultimately decides how the money is spent, and there is no guarantee of a specific level of advertising in their local area.