What other information is a Crave Cookies franchisee required to submit to Crave Cookies Franchising?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
ss statement and balance sheet for the Business within 30 days after the end of each calendar month;
- (ii) an annual financial statement (including profit and loss statement, cash flow statement, and balance sheet) for the Business within 90 days after the end of Crave Cookies Franchising's fiscal year; and
- (iii) any information Crave Cookies Franchising requests in order to prepare a financial performance representation for Crave Cookies Franchising's franchise disclosure document.
- (b) Legal Actions and Investigations. Franchisee shall promptly notify Crave Cookies Franchising of any Action or threatened Action by any customer, governmental authority, or other third party against Franchisee or the Business, or otherwise involving the Franchisee or the Business. Franchisee shall provide such documents and information related to any such Action as Crave Cookies Franchising may request.
- (c) Government Inspections. Franchisee shall give Crave Cookies Franchising copies of all inspection reports, warnings, certificates, and ratings issued by any governmental entity with respect to the Business, within three days of Franchisee's receipt thereof.
- (d) Other Information. Franchisee shall submit to Crave Cookies Franchising such other financial statements, budgets, forecasts, reports, records, copies of contracts, documents related to litigation, tax returns, copies of governmental permits, and other documents and information related to the Business as specified in the Manual or that Crave Cookies Franchising may reasonably request.
- 10.3 Initial Investment Report. Within 120 days after opening for business, Franchisee shall submit to Crave Cookies Franchising a report detailing Franchisee's investment costs to develop and open the Business, with costs allocated to the categories described in Item 7 of Crave Cookies Franchising's Franchise Disclosure Document and with such other information as Crave Cookies Franchising may request.
- 10.4 Business Records. Franchisee shall keep complete and accurate books and records reflecting all expenditures and receipts of the Business, with supporting documents (including, but not limited to, payroll records, payroll tax returns, register receipts, production reports, sales invoices, bank statements, deposit receipts, cancelled checks and paid invoices) for at least three years. Franchisee shall keep such other business records as Crave Cookies Franchising may specify in the Manual or otherwise in writing.
- 10.5 Records Audit. Crave Cookies Franchising may examine and audit all books and records related to the Business, and supporting documentation, at any reasonable time. Crave Cookies Franchising may conduct the audit at the Location and/or require Franchisee to deliver copies of books, records and supporting documentation to a location designated by Crave Cookies Franchising. Franchisee shall also reimburse Crave Cookies Franchising for all costs and expenses of the examination or audit if (i) Crave Cookies Franchising conducted the audit because Franchisee failed to submit required reports or was otherwise not in compliance with the
System, or (ii) the audit reveals that Franchisee understated Gross Sales by 3% or more for any 4-week period.
ARTICLE 11. FRANCHISOR RIGHTS
- 11.1 Manual; Modification. The Manual, and any part of the Manual, may be in any form or media determined by Crave Cookies Franchising. Crave Cookies Franchising may supplement, revise, or modify the Manual, and Crave Cookies Franchising may change, add or delete System Standards at any time in its discretion. Crave Cookies Franchising may inform Franchisee thereof by any method that Crave Cookies Franchising deems appropriate (which need not qualify as "notice" under Section 18.9). In the event of any dispute as to the contents of the Manual, Crave Cookies Franchising's master copy will control.
- 11.2 Inspections. Crave Cookies Franchising may enter the premises of the Business from time to time during normal business hours and conduct an inspection. Franchisee shall cooperate with Crave Cookies Franchising's inspectors. The inspection may include, but is not limited to, observing operations, conducting a physical inventory, evaluating physical conditions, monitoring sales activity, speaking with employees and customers, and removing samples of products, supplies and materials. Crave Cookies Franchising may videotape and/or take photographs of the inspection and the Business.
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2025 FDD)
According to the 2025 Crave Cookies Franchise Disclosure Document, franchisees are required to submit several types of information and documentation to Crave Cookies Franchising. This includes any data that Crave Cookies Franchising needs to prepare a financial performance representation for its Franchise Disclosure Document. Franchisees must also promptly report any legal actions or investigations against them or their business by customers, governmental bodies, or other third parties, and provide related documents as requested.
Crave Cookies franchisees must also provide copies of all inspection reports, warnings, certificates, and ratings received from governmental entities within three days of receipt. Additionally, franchisees are obligated to submit financial statements, budgets, forecasts, reports, records, copies of contracts, litigation-related documents, tax returns, governmental permits, and other business-related information as specified in the Manual or reasonably requested by Crave Cookies Franchising. Within 120 days of opening, franchisees must submit an initial investment report detailing the costs to develop and open the business, allocated to categories in Item 7 of the FDD, along with any other requested information.
Franchisees must maintain complete and accurate books and records of all business expenditures and receipts with supporting documentation for at least three years, and keep any other business records specified by Crave Cookies Franchising in the Manual or in writing. Crave Cookies Franchising retains the right to examine and audit these books and records at any reasonable time, either at the franchise location or by requiring the franchisee to deliver copies of the documents to a designated location. Furthermore, franchisees may be required to reimburse Crave Cookies Franchising for audit costs if they failed to submit required reports, were non-compliant, or if the audit reveals understated gross sales by 3% or more for any 4-week period. If a franchisee desires to purchase a particular Input from an alternate vendor, then the franchisee must submit a written request for approval and any information, specifications and/or samples requested by Crave Cookies Franchising.
If the Location and Territory are not stated on the Summary Page, the franchisee shall submit its proposed Location to Crave Cookies Franchising for acceptance, with all related information Crave Cookies Franchising may request. Franchisees are also required to participate in programs for obtaining customer evaluations, reviewing compliance with the Crave Cookies system, and managing customer complaints, which may include customer feedback systems, survey programs, and mystery shopping. Franchisees must meet or exceed any minimum scores set by Crave Cookies Franchising for these programs and on internet review sites. In connection with any lease between Franchisee and the landlord of the Location, if requested by Crave Cookies Franchising, Franchisee must submit the proposed lease to Crave Cookies Franchising for written approval.