Can a Crave Cookies franchisee offset or deduct 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' 2025 Franchise Disclosure Document, a franchisee is explicitly prohibited from offsetting or deducting any amounts from payments owed to Crave Cookies Franchising. The FDD states that the franchisee's obligation to pay fees and other amounts is an independent covenant, meaning it is not dependent on Crave Cookies' performance.
This "no set-off" clause is a fairly standard provision in franchise agreements. It protects Crave Cookies' revenue stream by ensuring that franchisees cannot withhold payments due to disputes or perceived failures on the part of the franchisor. This means that even if a franchisee believes Crave Cookies has breached the agreement or is not providing adequate support, the franchisee must continue to make all required payments.
The franchisee is obligated to make all payments without any reduction, regardless of any issues they may be experiencing. Failure to comply with this provision could result in penalties, interest charges of 18% per year, and potential legal action by Crave Cookies to recover the unpaid amounts. Prospective franchisees should carefully consider this clause and ensure they have sufficient financial resources to meet their payment obligations, even during challenging times.