Is a Crave Cookies franchisee required to pay all vendors and suppliers in a timely manner?

According to Crave Cookies' 2025 Franchise Disclosure Document, a franchisee's obligation to pay vendors and suppliers is addressed in the context of transferring the franchise. Specifically, before a franchisee can transfer the franchise agreement, they must have paid all monetary obligations to Crave Cookies and its affiliates, as well as to any lessor, vendor, supplier, or lender to the business. This indicates that timely payment to these entities is a condition for transferring ownership.

This requirement ensures that the Crave Cookies franchise is transferred in good standing, without outstanding debts to various parties involved in the business operations. It protects the brand's reputation and ensures a smooth transition for the new franchisee. By mandating that all financial obligations are met before the transfer, Crave Cookies maintains financial integrity across its franchise network.

While the FDD excerpt explicitly mentions this requirement in the context of franchise transfer, it does not detail the specific payment terms or the consequences of failing to pay vendors and suppliers on time during the normal course of business. A prospective franchisee should seek clarification from Crave Cookies regarding the specific expectations and policies related to timely payments to vendors and suppliers, as well as the potential repercussions for non-compliance outside of the transfer context.