When is the Marketing Fund Contribution due from a Crave Cookies franchisee?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
4.3 Marketing Contributions.
- (a) Marketing Fund Contribution. Franchisee shall pay Crave Cookies Franchising a contribution to the Marketing Fund (the "Marketing Fund Contribution") equal to 2% of Franchisee's Gross Sales, at the same time as the Royalty Fee.
4.7 Payment Terms.
(a) Method of Payment. Franchisee shall pay the Royalty Fee, Marketing Fund Contribution, and any other amounts owed to Crave Cookies Franchising by pre-authorized bank draft or in such other manner as Crave Cookies Franchising may require. Franchisee shall comply with Crave Cookies Franchising's payment instructions.
- (b) Calculation of Fees. Franchisee shall report weekly Gross Sales, outside of Square, to Crave Cookies Franchising by Tuesday of the following week. If Franchisee fails to report weekly Gross Sales, then Crave Cookies Franchising may withdraw estimated Royalty Fees and Marketing Fund Contributions equal to 125% of the last Gross Sales reported to Crave Cookies Franchising, and the parties will true-up the actual fees after Franchisee reports Gross Sales. Franchisee acknowledges that Crave Cookies Franchising has the right to remotely access Franchisee's point-of-sale system to calculate Gross Sales.
- (c) Late Fees and Interest. If Franchisee does not make a payment on time, Franchisee shall pay a $100 "late fee" plus interest on the unpaid amount at a rate equal to 18% per year (or, if such payment exceeds the maximum allowed by law, then interest at the highest rate allowed by law).
- (d) Insufficient Funds. Crave Cookies Franchising may charge $30 for any payment returned for insufficient funds (or, if such amount exceeds the maximum allowed by law, then the fee allowed by law).
- (f) Application. Crave Cookies Franchising may apply any payment received from Franchisee to any obligation and in any order as Crave Cookies Franchising may determine, regardless of any designation by Franchisee.
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, the Marketing Fund Contribution, which is 2% of the franchisee's Gross Sales, is due at the same time as the Royalty Fee. Franchisees must report their weekly Gross Sales to Crave Cookies by Tuesday of the following week, excluding sales made through Square.
Crave Cookies requires that franchisees pay the Royalty Fee, Marketing Fund Contribution, and any other amounts owed to Crave Cookies by pre-authorized bank draft or in another manner that Crave Cookies may require. If a franchisee fails to report weekly Gross Sales, Crave Cookies has the right to withdraw estimated Royalty Fees and Marketing Fund Contributions equal to 125% of the last Gross Sales reported, and the parties will reconcile the actual fees after the franchisee reports Gross Sales. Crave Cookies also has the right to remotely access the franchisee's point-of-sale system to calculate Gross Sales.
If a franchisee does not make a payment on time, Crave Cookies will charge a $100 late fee, plus interest on the unpaid amount at a rate of 18% per year (or the highest rate allowed by law, if lower). Additionally, Crave Cookies may charge $30 for any payment returned for insufficient funds (or the maximum fee allowed by law, if lower). Crave Cookies can apply any payment received from the franchisee to any obligation and in any order as Crave Cookies may determine, regardless of any designation by the franchisee.