Does Crave Cookies require franchisees to purchase inventory from approved suppliers?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
ent, 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.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 17–19)
What This Means (2025 FDD)
According to Crave Cookies's 2025 Franchise Disclosure Document, franchisees are required to purchase equipment, supplies, and inventory from approved suppliers. Specifically, all kitchen equipment must meet Crave Cookies's specifications and be purchased from approved suppliers. Similarly, all food, beverage, and other inventory purchases must meet the brand's specifications and come from approved suppliers. 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 requirement means that a prospective Crave Cookies franchisee will not have the freedom to choose their own suppliers for key items needed to run the business. Instead, they must rely on the suppliers that Crave Cookies has pre-approved. While this ensures consistency and quality control across all franchise locations, it also limits the franchisee's ability to negotiate better prices or source unique products. The FDD also states that Crave Cookies negotiates purchase arrangements with suppliers, including price terms, for the benefit of franchisees. For example, they currently have negotiated purchase contracts for items such as chocolate, butter and containers, which saves franchisees up to 46%.
Crave Cookies retains the right to modify these approved supplier lists and specifications, potentially impacting the franchisee's sourcing options. If a franchisee wishes to use a supplier not on the approved list, they must request written approval from Crave Cookies, who will evaluate the supplier based on criteria such as capacity, quality, financial stability, and reputation. Crave Cookies will provide written notification of approval or disapproval within 30 days of the request.
The FDD indicates that required purchases and leases account for a significant portion of a franchisee's expenses, estimating that they make up 50% to 80% of the total purchases and leases to both establish and operate the business. Furthermore, Crave Cookies benefits financially from these required purchases, with revenue from these sources totaling $632,828 in the prior fiscal year out of a total revenue of $2,413,050. This highlights the importance of understanding the approved supplier network and associated costs before investing in a Crave Cookies franchise.