Can Crave Cookies implement a centralized purchasing system?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
- 8.4 Purchasing. Crave Cookies Franchising may negotiate prices and terms with vendors on behalf of the System. Crave Cookies Franchising may receive rebates, payments or other consideration from vendors in connection with purchases by franchisees. Crave Cookies Franchising has the right (but not the obligation) to collect payments from Franchisee on behalf of a vendor and remit the payments to the vendor and to impose a reasonable markup or charge for administering the payment program. Crave Cookies Franchising may implement a centralized purchasing system. Crave Cookies Franchising may establish a purchasing cooperative and require Franchisee to join and participate in the purchasing cooperative on such terms and conditions as Crave Cookies Franchising may determine.
- 8.5 No Liability of Franchisor. Crave Cookies Franchising shall not have any liability to Franchisee for any claim or loss related to any product provided or service performed by any Approved Vendor or Required Vendor, including without limitation defects, delays, or unavailability of products or services.
- 8.6 Product Recalls. If Crave Cookies Franchising or any vendor, supplier, or manufacturer of an item used or sold in Franchisee's Business issues a recall of such item or otherwise notifies Franchisee that such item is defective or dangerous, Franchisee shall immediately cease using or selling such item, and Franchisee shall at its own expense comply with all instructions from Crave Cookies Franchising or the vendor, supplier, or manufacturer of such item with respect to such item, including without limitation the recall, repair, and/or replacement of such item.
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, Crave Cookies Franchising has the authority to implement a centralized purchasing system for the benefit of the entire franchise system. This means that Crave Cookies can establish a standardized method for franchisees to acquire necessary goods and services.
Crave Cookies Franchising also has the option to negotiate prices and terms with vendors on behalf of the franchise system. They may also receive rebates, payments, or other forms of compensation from vendors based on franchisee purchases. Furthermore, Crave Cookies Franchising has the right to collect payments from franchisees on behalf of a vendor and remit those payments, potentially adding a markup or charge for administering this payment program.
Crave Cookies Franchising can also establish a purchasing cooperative that franchisees would be required to join and participate in under terms and conditions set by Crave Cookies Franchising. However, Crave Cookies Franchising assumes no liability for any claims or losses related to products or services provided by approved or required vendors, including issues like defects, delays, or unavailability. If a product recall occurs, the franchisee is responsible for complying with instructions from Crave Cookies Franchising or the vendor, including ceasing use of the item and handling recall, repair, or replacement expenses.