Is the Crave Cookies Marketing Fund audited?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
Advertising Fund. You and all other franchisees must contribute to our Marketing Fund. Your contribution is 2% of gross sales per week. We reserve the right to have other franchisees contribute a different amount or at a different rate. Outlets that we own are not obligated to contribute to the Marketing Fund. We administer the fund. The fund is not audited.
If less than all marketing funds are spent in the fiscal year in which they accrue, the money will remain in the Marketing Fund to be spent in the next year.
No money from the Marketing Fund is spent principally to solicit new franchise sales.
Market Cooperatives. Crave Cookies Franchising may establish market advertising and promotional cooperative funds ("Market Cooperative") in any geographical areas. If a Market Cooperative for the geographic area encompassing the Location has been established at the time Franchisee commences operations hereunder, Franchisee shall immediately become a member of such Market Cooperative. If a Market Cooperative for the geographic area encompassing the Location is established during the term of this Agreement, Franchisee shall become a member of such Market Cooperative within 30 days. Crave Cookies Franchising shall not require Franchisee to be a member of more than one Market Cooperative. If Crave Cookies Franchising establishes a Market Cooperative:
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, the Marketing Fund is not audited. Franchisees are required to contribute 2% of their gross sales per week to the Marketing Fund, although Crave Cookies retains the right to have different franchisees contribute different amounts or rates. Notably, outlets owned by Crave Cookies itself are not obligated to contribute to the Marketing Fund. Crave Cookies administers the fund.
Crave Cookies will prepare an unaudited annual financial statement of the Marketing Fund within 120 days of the close of their fiscal year and will provide the financial statement to franchisees upon request. This means that while franchisees can request a financial statement, the statement will not be subjected to an independent audit to verify its accuracy.
The lack of an independent audit may raise concerns for prospective franchisees, as it means there is less external oversight of how the Marketing Fund is managed and spent. While Crave Cookies states that the Marketing Fund will be used only for marketing and related costs, the absence of an audit could lead to questions about transparency and accountability. Franchisees might want to inquire about the processes Crave Cookies uses to ensure the funds are managed responsibly, given that the FDD explicitly states that the fund is not audited.
In the event that the Market Cooperative is terminated, any remaining funds will be transferred to the Marketing Fund. This further emphasizes the importance of understanding how the Marketing Fund is managed, given that it can receive funds from various sources. Prospective franchisees should carefully consider the implications of contributing to a marketing fund that is not independently audited and ask Crave Cookies for additional information or assurances regarding its financial management practices.