factual

Does Crave Cookies Franchising have the right to remotely access a franchisee's point-of-sale system to calculate Gross Sales?

Crave_Cookies Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (b) Calculation of Fees. Franchisee shall report weekly Gross Sales, outside of Square, to Crave Cookies Franchising by Tuesday of the following week. If Franchisee fails to report weekly Gross Sales, then Crave Cookies Franchising may withdraw estimated Royalty Fees and Marketing Fund Contributions equal to 125% of the last Gross Sales reported to Crave Cookies Franchising, and the parties will true-up the actual fees after Franchisee reports Gross Sales. Franchisee acknowledges that Crave Cookies Franchising has the right to remotely access Franchisee's point-of-sale system to calculate Gross Sales.

Source: Item 22 — CONTRACTS (FDD page 47)

What This Means (2025 FDD)

According to Crave Cookies' 2025 Franchise Disclosure Document, Crave Cookies Franchising does have the right to remotely access a franchisee's point-of-sale (POS) system to calculate Gross Sales. This is explicitly stated in Section 4.7(b) of the franchise agreement, which outlines the calculation of fees.

This provision allows Crave Cookies to monitor sales data directly, ensuring accurate calculation of royalty fees and marketing fund contributions. Franchisees are still required to report weekly Gross Sales outside of Square by Tuesday of the following week. However, if a franchisee fails to report weekly Gross Sales, Crave Cookies can withdraw estimated fees equal to 125% of the last reported Gross Sales, with a later reconciliation once the franchisee provides the actual sales figures.

For a prospective franchisee, this means they must use a POS system that allows Crave Cookies Franchising remote access. It also highlights the importance of accurate and timely reporting of Gross Sales to avoid estimated fee withdrawals. The franchisee should ensure their POS system is compatible and secure, and that they understand the reporting requirements to maintain compliance with the franchise agreement.

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.