factual

Is Crave Cookies obligated to collect payments from franchisees on behalf of vendors?

Crave_Cookies Franchise · 2025 FDD

Answer from 2025 FDD Document

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.

Source: Item 22 — CONTRACTS (FDD page 47)

What This Means (2025 FDD)

According to Crave Cookies' 2025 Franchise Disclosure Document, Crave Cookies Franchising is not obligated to collect payments from franchisees on behalf of vendors. However, Crave Cookies Franchising has the right to collect payments from franchisees on behalf of a vendor and remit those payments to the vendor. Crave Cookies Franchising also has the right to impose a reasonable markup or charge for administering this payment program.

This means that while Crave Cookies may offer a service to streamline payments to vendors, franchisees cannot rely on this as a mandatory service. Franchisees should be prepared to manage their own vendor payments independently, unless Crave Cookies chooses to implement this payment collection program.

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. These systems could influence how payments are handled, but the core discretion to collect payments on behalf of vendors remains with Crave Cookies.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.