Does Crave Cookies receive any benefits from vendors based on franchisee purchases?
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.
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies's 2025 Franchise Disclosure Document, Crave Cookies Franchising may receive benefits from vendors based on franchisee purchases. Specifically, Crave Cookies Franchising has the option to negotiate prices and terms with vendors on behalf of the entire Crave Cookies system.
As a result of these negotiations, Crave Cookies Franchising may receive rebates, payments, or other forms of consideration from vendors related to franchisee purchases. Furthermore, Crave Cookies Franchising has the right, but not the obligation, to collect payments from franchisees on behalf of a vendor and then remit those payments to the vendor. Crave Cookies Franchising can also impose a reasonable markup or charge for administering this payment program.
This arrangement is fairly common in franchising, as it allows the franchisor to leverage the collective buying power of the franchise system to negotiate better deals with suppliers. These benefits can then be shared with franchisees in the form of lower prices or other incentives, or retained by the franchisor as a source of revenue. Crave Cookies Franchising also has the option to implement a centralized purchasing system or establish a purchasing cooperative, requiring franchisees to participate under terms and conditions determined by Crave Cookies Franchising.