Can Crave Cookies negotiate prices with vendors on behalf of the franchise system?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
- 8.4 Purchasing. 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.
- 8.5 No Liability of Franchisor. Crave Cookies Franchising shall not have any liability to Franchisee for any claim or loss related to any product provided or service performed by any Approved Vendor or Required Vendor, including without limitation defects, delays, or unavailability of products or services.
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies's 2025 Franchise Disclosure Document, Crave Cookies Franchising has the option to negotiate prices and terms with vendors for the benefit of the entire franchise system. This means that Crave Cookies may leverage its collective buying power to secure better deals on supplies and services needed by franchisees. Crave Cookies Franchising also has the right to receive rebates, payments, or other forms of compensation from vendors based on franchisee purchases.
Furthermore, Crave Cookies Franchising has the right, but not the obligation, to collect payments from franchisees on behalf of a vendor and remit those payments to the vendor. They can also impose a reasonable markup or charge for managing this payment program. This could streamline the payment process for franchisees and ensure vendors are paid promptly.
Crave Cookies Franchising also has the option to implement a centralized purchasing system or establish a purchasing cooperative, which franchisees may be required to join. This would give Crave Cookies even greater control over pricing and vendor relationships, potentially leading to cost savings and standardized quality across the franchise system. However, franchisees should be aware that Crave Cookies Franchising does not accept liability for any claims or losses related to products or services provided by approved vendors.