factual

Can Crave Cookies Franchising accumulate funds in the Marketing Fund?

Crave_Cookies Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (e) Surplus or Deficit.

Crave Cookies Franchising may accumulate funds in the Marketing Fund and carry the balance over to subsequent years.

If the Marketing Fund operates at a deficit or requires additional funds at any time, Crave Cookies Franchising may loan such funds to the Marketing Fund on reasonable terms.

Source: Item 22 — CONTRACTS (FDD page 47)

What This Means (2025 FDD)

According to Crave Cookies's 2025 Franchise Disclosure Document, Crave Cookies Franchising has the ability to accumulate funds within the Marketing Fund. Specifically, Crave Cookies Franchising can carry over any remaining balance in the Marketing Fund to subsequent years. This means that if the Marketing Fund generates more revenue than expenses in a given year, the excess funds can be saved and used in future years.

Additionally, the FDD states that if the Marketing Fund operates at a deficit or requires additional funds at any time, Crave Cookies Franchising has the option to loan funds to the Marketing Fund on reasonable terms. This provides Crave Cookies Franchising with flexibility in managing the Marketing Fund's finances and ensuring that sufficient funds are available for marketing activities.

This policy gives Crave Cookies Franchising discretion over the Marketing Fund, but franchisees receive some transparency through an annual financial statement. Franchisees should monitor these statements to understand how the fund is being managed and how their contributions are being used. This is a fairly standard practice in franchising, where marketing funds are often managed at the franchisor's discretion to benefit the entire system.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.