Is Crave Cookies Franchising obligated to pay amounts that a franchisee owes to a supplier?

According to Crave Cookies's 2025 Franchise Disclosure Document, Crave Cookies Franchising is generally not obligated to pay amounts a franchisee owes to a supplier or other third party. However, Crave Cookies Franchising retains the option to do so.

Specifically, Crave Cookies Franchising may choose to pay any amount that a franchisee owes to a supplier or other third party. If Crave Cookies Franchising elects to make such a payment, the franchisee is then obligated to reimburse Crave Cookies Franchising for the amount paid, along with an additional 10% administrative charge. This reimbursement, plus the administrative fee, is due within 15 days after Crave Cookies Franchising invoices the franchisee, provided that the invoice is accompanied by reasonable documentation of the payment.

This arrangement provides Crave Cookies Franchising with the flexibility to assist franchisees in managing their supplier relationships, but it does not create an obligation for them to do so. It also allows Crave Cookies Franchising to recover its costs and a small administrative fee for providing this service. For a prospective franchisee, this means they should not rely on Crave Cookies Franchising to cover their debts to suppliers, but they should be aware that Crave Cookies Franchising may step in to help under certain circumstances, which would then create a debt to the franchisor.