For what purposes can Crave Cookies Franchising use the Marketing Fund?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Use.
Crave Cookies Franchising shall use the Marketing Fund only for marketing, advertising, and public relations materials, programs and campaigns (including at local, regional, national, and/or international level), and related overhead.
The foregoing includes such activities and expenses as Crave Cookies Franchising reasonably determines, and may include, without limitation: development and placement of advertising and promotions; sponsorships; contests and sweepstakes; development of décor, trade dress, Marks, and/or branding; development and maintenance of brand websites; social media; internet activities; e-commerce programs; search engine optimization; market research; public relations, media or agency costs; trade shows and other events; printing and mailing; and administrative and overhead expenses related to the Marketing Fund (including the compensation of Crave Cookies Franchising's employees working on marketing and for accounting, bookkeeping, reporting, legal and other expenses related to the Marketing Fund).
- (c) Discretion.
Franchisee agrees that expenditures from the Marketing Fund need not be proportionate to contributions made by Franchisee or provide any direct or indirect benefit to Franchisee.
The Marketing Fund will be spent at Crave Cookies Franchising's sole discretion, and Crave Cookies Franchising has no fiduciary duty with regard to the Marketing Fund.
- (d) Contribution by Other Outlets.
Crave Cookies Franchising is not obligated to (i) have all other Crave Cookies businesses (whether owned by other franchisees or by Crave Cookies Franchising or its affiliates) contribute to the Marketing Fund, or (ii) have other Crave Cookies businesses that do contribute to the Marketing Fund contribute the same amount or at the same rate as Franchisee.
- (e) Surplus or Deficit.
Crave Cookies Franchising may accumulate funds in the Marketing Fund and carry the balance over to subsequent years.
If the Marketing Fund operates at a deficit or requires additional funds at any time, Crave Cookies Franchising may loan such funds to the Marketing Fund on reasonable terms.
- (f) Financial Statement.
Crave Cookies Franchising will prepare an unaudited annual financial statement of the Marketing Fund within 120 days of the close of Crave Cookies Franchising's fiscal year and will provide the financial statement to Franchisee upon request.
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies's 2025 Franchise Disclosure Document, the Marketing Fund is used for marketing, advertising, and public relations on various levels. Specifically, Crave Cookies Franchising can use the Marketing Fund for marketing, advertising, and public relations materials, programs, and campaigns at the local, regional, national, and/or international level, including related overhead.
These activities and expenses are determined at Crave Cookies Franchising's discretion and may include development and placement of advertising and promotions, sponsorships, contests and sweepstakes, development of décor, trade dress, Marks, and/or branding, development and maintenance of brand websites, social media, internet activities, e-commerce programs, search engine optimization, market research, public relations, media or agency costs, trade shows and other events, printing and mailing, and administrative and overhead expenses related to the Marketing Fund, including compensation for Crave Cookies Franchising's employees working on marketing and for accounting, bookkeeping, reporting, legal and other expenses related to the Marketing Fund.
The FDD stipulates that Crave Cookies Franchising has sole discretion over how the Marketing Fund is spent, and expenditures do not need to be proportionate to a franchisee's contributions or provide any direct or indirect benefit to the franchisee. Crave Cookies Franchising is not obligated to have all Crave Cookies businesses contribute to the Marketing Fund or contribute the same amount or rate as the franchisee. Crave Cookies Franchising can also accumulate funds in the Marketing Fund and carry the balance over to subsequent years and may loan funds to the Marketing Fund if it operates at a deficit.
Crave Cookies Franchising will provide an unaudited annual financial statement of the Marketing Fund within 120 days of the close of its fiscal year, which will be available to franchisees upon request. This provides a degree of transparency, though the lack of a fiduciary duty and the unaudited nature of the statement means franchisees have limited recourse regarding the fund's management.