Must all Crave Cookies franchisees contribute the same amount to the Marketing Fund?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
Advertising Fund. You and all other franchisees must contribute to our Marketing Fund. Your contribution is 2% of gross sales per week. We reserve the right to have other franchisees contribute a different amount or at a different rate. Outlets that we own are not obligated to contribute to the Marketing Fund. We administer the fund. The fund is not audited.
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, franchisees are generally required to contribute to the Marketing Fund, but the contribution amount may vary. The standard contribution is 2% of gross sales per week. However, Crave Cookies retains the right to have different franchisees contribute different amounts or at different rates. Notably, outlets that Crave Cookies owns are not obligated to contribute to the Marketing Fund.
In addition to the Marketing Fund, Crave Cookies may establish market advertising and promotional cooperative funds ("Market Cooperative") in any geographical areas. If a Market Cooperative is established, franchisees within that area must become members. The dues for the Market Cooperative are determined by a majority vote of its members, but must be between 1% and 5% of Gross Sales.
This means that while a base contribution to the Marketing Fund is set at 2% of gross sales, Crave Cookies has the flexibility to adjust this percentage for individual franchisees. Furthermore, franchisees may also be required to contribute to a Market Cooperative, adding another layer of advertising expense that can vary based on the cooperative's decisions. Prospective franchisees should clarify with Crave Cookies the specific contribution requirements for their location and whether a Market Cooperative is in place or planned for their area.