Does Crave Cookies require franchisees to purchase equipment from approved suppliers?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
em 11 for more details.
- D. Equipment, Supplies, Inventory. You must purchase the equipment, supplies and inventory to be used in the operation of the franchised business. All of your kitchen equipment must meet our specifications and be purchased only from approved suppliers. All of your food, beverage, and other inventory purchases must meet our specifications and be purchased only from approved suppliers. Franchisee must purchase proprietary boxes, and items such as shirts, tumblers, gift cards and all other Crave merchandise from Crave Cookies, LLC. Purchasing products and services from us is exclusive and mandatory.
- E. Proprietary Boxes. You must purchase the boxes you will use in the operation of the franchised business from Crave Cookies Franchising, LLC.
Us or Our Affiliates as Supplier
Our affiliate is currently a supplier of a good or service that you must purchase, and we reserve the right to be a supplier (or the sole supplier) of a good or service in the future. Franchisee will purchase proprietary boxes from Crave Cookies Franchising, LLC.
Ownership of Suppliers
Our officers do not own an interest in any suppliers outside of the requirement to purchase the proprietary boxes and other merchandise from Crave Cookies Franchising, LLC.
Alternative Suppliers
If you want to use a supplier that is not on our list of approved suppliers, you must request our approval in writing. We will grant or revoke approvals of suppliers based on criteria appropriate to the situation, which may include evaluations of the supplier's capacity, quality,
financial stability, reputation, and reliability; inspections; product testing, and performance reviews. Our criteria for approving suppliers are not available to you. We permit you to contract with alternative suppliers who meet our criteria only if you request our approval in writing, and we grant approval. There is no fee for us to review or approve an alternate supplier.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 17–19)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, franchisees are required to purchase equipment from approved suppliers. Specifically, all kitchen equipment must meet Crave Cookies' specifications and be purchased only from approved suppliers. This requirement extends to food, beverage, and other inventory as well. Franchisees must also purchase proprietary boxes and merchandise like shirts, tumblers, and gift cards directly from Crave Cookies, LLC, making these purchases exclusive and mandatory.
This mandate ensures brand consistency and quality control across all Crave Cookies locations. While it limits a franchisee's choice of suppliers, Crave Cookies does allow franchisees to request approval for alternative suppliers in writing. The franchisor will evaluate the supplier based on criteria such as capacity, quality, financial stability, reputation, and reliability. Crave Cookies will provide written notification of approval or disapproval within 30 days of the request.
Crave Cookies also negotiates purchase arrangements with suppliers, potentially benefiting franchisees through better pricing terms. For instance, they have negotiated contracts for items like chocolate, butter, and containers, which they estimate can save franchisees up to 46%. The FDD states that Crave Cookies receives payments from designated suppliers based on franchisee purchases.
Overall, while franchisees are obligated to use approved suppliers for key equipment, inventory, and proprietary items, Crave Cookies provides a mechanism for requesting alternative suppliers and actively negotiates pricing to help manage costs. Franchisees should carefully consider these requirements and the potential impact on their operating expenses.