Are Crave Cookies franchisees or other franchisees the basis for payments that Crave Cookies receives from designated suppliers?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
esignated Suppliers to Us
We currently receive payments from designated suppliers based on purchases by you or other franchisees. The franchise agreement does not prohibit us from doing so.
Purchasing or Distribution Cooperatives
No purchasing or distribution cooperative currently exists.
Negotiated Arrangements
We do negotiate purchase arrangements with suppliers, including price terms, for the benefit of franchisees. For example, we currently have negotiated purchase contracts for items such as chocolate, butter and containers. These contracts currently save our franchisees up to 46%.
Item 9 FRANCHISEE'S OBLIGATIONS
**This table lists your principal obligations under the franchise and other agreements.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 17–19)
What This Means (2025 FDD)
According to Crave Cookies's 2025 Franchise Disclosure Document, Crave Cookies does receive payments from designated suppliers based on the purchases made by franchisees, including the prospective franchisee. This means that when a franchisee purchases goods or services from suppliers that Crave Cookies has designated or approved, those suppliers may, in turn, provide payments to Crave Cookies. The franchise agreement does not prohibit this practice.
This arrangement is fairly common in franchising, as it allows the franchisor to generate additional revenue streams. However, it's important for a prospective Crave Cookies franchisee to understand that this arrangement could potentially influence which suppliers are designated or approved by Crave Cookies. While Crave Cookies negotiates purchase arrangements with suppliers, including price terms, for the benefit of franchisees, these contracts currently save franchisees up to 46%.
It is important to note that Crave Cookies's total revenue in the prior fiscal year was $2,413,050, and their revenue from all required purchases and leases of products and services by franchisees in the prior fiscal year was $632,828. This gives a sense of the scale of these supplier payments relative to overall revenue. A prospective franchisee should consider how these arrangements might affect the cost and quality of goods and services they are required to purchase, and whether the negotiated savings are truly the best available.