What monthly marketing fee does Crave Cookies receive from franchisees?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
Revenues from continuing fees, including royalties, marketing fees and upfront franchise fees. The Company receives a monthly royalty fee equal to 6% and monthly marketing fee equal to 2% of the franchisees weekly gross sales due the following Tuesday. These royalty payments are considered to be variable consideration; however, the Company relies on a narrow exception to the variable consideration criteria where there is a sales-based or usage-based royalty and marketing. Under this exception, the Company recognizes revenue for sales-based royalty and marketing revenue on a monthly basis based on sales reports by their franchisees.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, franchisees are required to pay a monthly marketing fee. This fee is equal to 2% of the franchisee's weekly gross sales. The payments are due the following Tuesday.
Crave Cookies recognizes this marketing revenue on a monthly basis. This is based on the sales reports submitted by the franchisees. The FDD specifies that these payments are considered variable consideration. However, Crave Cookies relies on a narrow exception to the variable consideration criteria where there is a sales-based or usage-based royalty and marketing.
For a prospective franchisee, this means that the amount paid for marketing each month will fluctuate depending on their sales performance. It's important to note that this fee is in addition to the 6% monthly royalty fee also based on gross sales.