Where are the funds transferred to upon termination of a Crave Cookies Market Cooperative?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
- (f) Termination. Crave Cookies Franchising may terminate any Market Cooperative. Any funds left in a Market Cooperative upon termination will be transferred to the Marketing Fund.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 22–29)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, if a Market Cooperative is terminated, any remaining funds will be transferred to the Marketing Fund.
This means that if a regional advertising cooperative is dissolved by Crave Cookies, the money that the cooperative has accumulated will not be returned to the franchisees who contributed to it. Instead, these funds will be absorbed into the larger Marketing Fund, which Crave Cookies manages.
For a prospective franchisee, this highlights the importance of understanding how the Marketing Fund is managed and used. While the funds are supposed to be used for marketing and related purposes, the franchisee loses control over those specific dollars if the cooperative is terminated. It would be prudent to inquire about the criteria and process Crave Cookies uses to determine when to terminate a Market Cooperative, and how the Marketing Fund is utilized to benefit franchisees in similar situations.