When will the Franchisor collect initial fees from a Crave Cookies franchisee in Illinois?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
- **5.
Deferral of Initial Franchise Fee.** Franchisor will not collect any initial fees until Franchisor has satisfied its pre-opening obligations to Franchisee and Franchisee has commenced doing business (Section 200.508 of the Rules).
The Illinois Attorney General's Office imposed this deferral requirement due to Franchisor's financial condition.
Source: Item 23 — RECEIPTS (FDD pages 47–194)
What This Means (2025 FDD)
According to Crave Cookies's 2025 Franchise Disclosure Document, the franchisor will defer collecting any initial franchise fees from franchisees in Illinois until specific conditions are met. Crave Cookies will wait until it has satisfied all its pre-opening obligations to the franchisee and the franchisee has commenced business operations. This policy is in accordance with Section 200.508 of the Rules.
This deferral requirement was imposed by the Illinois Attorney General's Office due to Crave Cookies's financial condition. This means that prospective franchisees in Illinois will not be required to pay the initial franchise fee upfront, which can be a significant financial benefit.
This arrangement protects the franchisee by ensuring that Crave Cookies fulfills its obligations before receiving the initial franchise fee. It also provides some assurance to the franchisee that the business is ready to open and operate before they invest fully. This type of deferral is not standard in the franchise industry, so it is a notable benefit for franchisees in Illinois.