Can Crave Cookies impose a markup for administering a payment program for vendors?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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 right to collect payments from franchisees on behalf of a vendor and remit those payments to the vendor. Furthermore, Crave Cookies has the right, but not the obligation, to impose a reasonable markup or charge for administering this payment program.
This means that as a Crave Cookies franchisee, you may be required to participate in a payment program administered by the franchisor for payments to vendors. If Crave Cookies chooses to implement such a program, they can add a markup or charge to cover the administrative costs. The FDD does not specify the amount or method for determining this markup, only that it must be reasonable.
As a prospective franchisee, it would be prudent to inquire with Crave Cookies about the specifics of this potential payment program. You should ask about the typical markup or charge applied, how it is calculated, and what benefits the program offers to franchisees to justify the additional cost. Understanding these details will help you assess the financial implications of this program on your business.