Is a Crave Cookies franchisee allowed to deduct or offset any amounts from payments owed to Crave Cookies Franchising?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
- (g) Obligations Independent; No Set-Off. The obligations of Franchisee to pay to Crave Cookies Franchising any fees or amounts described in this Agreement are not dependent on Crave Cookies Franchising's performance and are independent covenants by Franchisee. Franchisee shall make all such payments without offset or deduction.
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies's 2025 Franchise Disclosure Document, franchisees are required to make all payments to Crave Cookies without any deductions or offsets. This means a franchisee cannot reduce the amount they owe to Crave Cookies by deducting any expenses, costs, or other amounts they believe are owed to them.
This requirement is a standard practice in franchising, ensuring that the franchisor receives the full amount of royalties, marketing fund contributions, and other fees as outlined in the franchise agreement. It protects the franchisor's revenue stream and helps maintain the financial stability of the franchise system.
The franchise agreement specifies that the franchisee's payment obligations are independent of Crave Cookies's performance. This means that even if a franchisee believes Crave Cookies has not fulfilled its obligations, the franchisee is still required to make all payments in full and on time. Failure to do so can result in late fees, interest charges, and potentially, termination of the franchise agreement.
While franchisees cannot offset payments, they retain other legal avenues to address disputes with Crave Cookies, such as mediation or legal proceedings, as detailed elsewhere in the Franchise Agreement. This clause simply mandates that financial obligations must be met without self-help remedies like payment deductions.