Is Crave Cookies Franchising obligated to establish a Marketing Fund?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
Cookies Franchising.
9.2 Use by Crave Cookies Franchising. Crave Cookies Franchising may use any marketing materials or campaigns developed by or on behalf of Franchisee, and Franchisee hereby grants an unlimited, perpetual, royalty-free license to Crave Cookies Franchising for such purpose.
9.3 Marketing Fund. Crave Cookies Franchising may establish a Marketing Fund to promote the System on a local, regional, national, and/or international level. If Crave Cookies Franchising has established a Marketing Fund:
(a) Separate Account. Crave Cookies Franchising shall hold the Marketing Fund Contributions from all franchisees in one or more bank accounts separate from Crave Cookies Franchising's other accounts.
(b) Use. Crave Cookies Franchising shall use the Marketing Fund only for marketing, advertising, and public relations materials, programs and campaigns (including at local, regional, national, and/or international level), and related overhead. The foregoing includes such activities and expenses as Crave Cookies Franchising reasonably determines, and may include, without limitation: development and placement of advertising and promotions; sponsorships; contests and sweepstakes; development of décor, trade dress, Marks, and/or branding; development and maintenance of brand websites; social media; internet activities; e-commerce programs; search engine optimization; market research; public relations, media or agency costs; trade shows and other events; printing and mailing; and administrative and overhead expenses related to the Marketing Fund (including the compensation of Crave Cookies Franchising's employees working on marketing and for accounting, bookkeeping, reporting, legal and other expenses related to the Marketing Fund).
(c) Discretion. Franchisee agrees that expenditures from the Marketing Fund need not be proportionate to contributions made by Franchisee or provide any direct or indirect benefit to Franchisee. The Marketing Fund will be spent at Crave Cookies Franchising's sole discretion, and Crave Cookies Franchising has no fiduciary duty with regard to the Marketing Fund.
(d) Contribution by Other Outlets.
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies's 2025 Franchise Disclosure Document, Crave Cookies Franchising is not obligated to establish a Marketing Fund. However, Crave Cookies Franchising may choose to establish one to promote the Crave Cookies system on a local, regional, national, and/or international level. If Crave Cookies Franchising establishes a Marketing Fund, it will hold the contributions from all franchisees in one or more bank accounts separate from Crave Cookies Franchising's other accounts.
If a Marketing Fund is established, Crave Cookies Franchising will use it only for marketing, advertising, and public relations materials, programs, and campaigns, including related overhead. This can include development and placement of advertising and promotions, sponsorships, contests, development of branding, website maintenance, social media, e-commerce programs, search engine optimization, market research, public relations, trade shows, printing, mailing, and administrative expenses related to the Marketing Fund.
Crave Cookies Franchising is not obligated to have all other Crave Cookies businesses contribute to the Marketing Fund, nor are they obligated to have other Crave Cookies businesses contribute the same amount or at the same rate as the franchisee. Crave Cookies Franchising may accumulate funds in the Marketing Fund and carry the balance over to subsequent years. Crave Cookies Franchising will prepare an unaudited annual financial statement of the Marketing Fund within 120 days of the close of Crave Cookies Franchising's fiscal year and will provide the financial statement to the franchisee upon request.
Franchisees are required to pay a Marketing Fund Contribution equal to 2% of their Gross Sales, at the same time as the Royalty Fee, if Crave Cookies Franchising establishes a Marketing Fund. Crave Cookies Franchising may also establish market advertising and promotional cooperative funds ("Market Cooperative") in any geographical areas. If a Market Cooperative for the geographic area encompassing the Location has been established at the time Franchisee commences operations, the Franchisee shall immediately become a member of such Market Cooperative.