Does the Crave Cookies franchise agreement prohibit Crave Cookies from receiving payments from designated suppliers based on franchisee purchases?

According to Crave Cookies's 2025 Franchise Disclosure Document, the franchise agreement does not prohibit Crave Cookies from receiving payments from designated suppliers based on franchisee purchases. This means that Crave Cookies is allowed to receive financial benefits from suppliers based on the volume or value of purchases made by its franchisees.

This practice is relatively common in franchising, where franchisors negotiate deals with suppliers and may receive rebates or commissions as a result. For a prospective Crave Cookies franchisee, this arrangement could indirectly benefit them if Crave Cookies uses these payments to offset costs or invest in resources that support the franchise system. However, it's important for franchisees to ensure that these arrangements do not compromise the quality or cost-effectiveness of the products and services they are required to purchase.

It is worth noting that Crave Cookies also negotiates purchase arrangements with suppliers, potentially saving franchisees up to 46% on certain items like chocolate, butter, and containers. While the FDD mentions that Crave Cookies's revenue from all required purchases and leases of products and services by franchisees in the prior fiscal year was $632,828, it does not specify how the payments received from designated suppliers are used or distributed. A prospective franchisee may want to inquire about how these funds are utilized to benefit the franchise system as a whole.