To what extent does Crave Cookies have the right to determine prices charged by franchisees?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
- D. Establishing prices. We will provide recommended prices for products and services. (Section 5.5). We have the right to determine prices charged by our franchisees for menu items, beverages, goods and services (but only to the extent permitted by applicable law).
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 22–29)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, Crave Cookies retains the right to determine the prices franchisees charge for menu items, beverages, goods, and services, but this is only to the extent permitted by applicable law. Crave Cookies will also provide recommended prices for products and services.
This means that while Crave Cookies can suggest pricing, franchisees need to be aware of local laws that may impact pricing decisions. Franchisees should consult with legal counsel to ensure they comply with all applicable pricing regulations in their area.
It is common practice in the franchise industry for franchisors to provide pricing guidelines or recommendations to ensure brand consistency and competitiveness. However, franchisees typically have some flexibility in setting prices to account for local market conditions and costs, provided they adhere to legal requirements.