For what purposes will the Crave Cookies Marketing Fund be used?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
bsite of your own.
Advertising
Our obligation. We will use the Marketing Fund only for marketing and related purposes and costs. Media coverage is primarily local. We use outside vendors and consultants to produce advertising. The 2% of daily gross sales, paid into the marketing fund, is used for your territory and is dedicated entirely to marketing for your location. We are not obligated to spend any amount on advertising in your area or territory.
Your own advertising material. You may use your own advertising or marketing material only with our approval. To obtain our approval, you must submit any proposed advertising or marketing material at least 14 days prior to use. If we do not respond, the material is deemed rejected. If you develop any advertising or marketing materials, we may use those materials for any purpose, without any payment to you.
Advertising council. We do not have an advertising council composed of franchisees. The franchise agreement does not give us the power to form an advertising council.
Advertising Fund. You and all other franchisees must contribute to our Marketing Fund. Your contribution is 2% of gross sales per week. We reserve the right to have other franchisees contribute a different amount or at a different rate. Outlets that we own are not obligated to contribute to the Marketing Fund. We administer the fund. The fund is not audited.
If less than all marketing funds are spent in the fiscal year in which they accrue, the money will remain in the Marketing Fund to be spent in the next year.
No money from the Marketing Fund is spent principally to solicit new franchise sales.
Market Cooperatives. Crave Cookies Franchising may establish market advertising and promotional cooperative funds ("Market Cooperative") in any geographical areas. If a Market Cooperative for the geographic area encompassing the Location has been established at the time Franchisee commences operations hereunder, Franchisee shall immediately become a member of such Market Cooperative.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 22–29)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, the Marketing Fund is designated for marketing and related costs. The media coverage is primarily local, and Crave Cookies uses outside vendors and consultants to produce advertising. Franchisees contribute 2% of their daily gross sales to the marketing fund, which is used for their specific territory and dedicated entirely to marketing for their location. However, Crave Cookies is not obligated to spend any specific amount on advertising in the franchisee's area or territory.
If the Marketing Fund has remaining funds at the end of the fiscal year, the money will remain in the fund for use in the next year. Importantly, no money from the Marketing Fund is used to solicit new franchise sales. Crave Cookies also has the option to establish market advertising and promotional cooperative funds, called "Market Cooperatives," in certain geographical areas.
Each Market Cooperative is devoted to administering regional advertising and marketing programs and developing standardized promotional materials for use by its members in local advertising and promotion, subject to Crave Cookies' approval. The activities of each Market Cooperative are decided by a majority vote of its members, though Crave Cookies is entitled to attend and participate in any meeting. Franchisees may be required to pay dues to the Market Cooperative, ranging from 1% to 5% of gross sales, as determined by a majority vote of the cooperative's members. Crave Cookies retains the right to enforce the obligations of franchisees to contribute to the Market Cooperative and may terminate any Market Cooperative, with any remaining funds transferred to the Marketing Fund.