factual

Can Crave Cookies receive rebates from vendors based on franchisee purchases?

Crave_Cookies Franchise · 2025 FDD

Answer 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' 2025 Franchise Disclosure Document, Crave Cookies Franchising has the ability to negotiate prices and terms with vendors on behalf of the entire Crave Cookies system. This means they can leverage the collective buying power of all franchisees to potentially secure better deals.

Specifically, Crave Cookies Franchising is permitted to receive rebates, payments, or other forms of consideration from vendors based on the purchases made by franchisees. They also have the option, but not the obligation, to collect payments from franchisees on behalf of a vendor and then remit those payments to the vendor. In doing so, Crave Cookies Franchising can impose a reasonable markup or charge to franchisees for administering this payment program.

Furthermore, Crave Cookies Franchising has the option to implement a centralized purchasing system or establish a purchasing cooperative, which franchisees may be required to join and participate in under terms and conditions set by Crave Cookies Franchising. This gives Crave Cookies Franchising significant control over the supply chain and vendor relationships within the franchise system. A prospective franchisee should inquire about how these rebates are used and whether they benefit the franchisees directly through lower costs or other means.

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.