Does Crave Cookies require franchisees to purchase supplies 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. 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. We will provide you with written notification of the approval or disapproval of any supplier you propose within 30 days after receipt of your request. We may grant approvals of new suppliers or revoke past approvals of suppliers on written notice to you, or by updating our Manual.
Issuing Specifications and Standards
We issue specifications and standards to you for applicable aspects of the franchise in our Manual and/or in written directives. We may issue new specifications and standards for any aspect of our brand system, or modify existing specifications and standards, at any time by revising our Manual and/or issuing new written directives (which may be communicated to you by any method we choose).
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 generally 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 company's specifications and come from approved suppliers. Franchisees must 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 have limited flexibility in sourcing these essential items. While franchisees can request approval for alternative suppliers, Crave Cookies retains the right to grant or revoke these approvals based on its own criteria, which are not disclosed to franchisees. Crave Cookies will provide a written notification of the approval or disapproval of any supplier within 30 days after receipt of the request. Crave Cookies can also change supplier approvals by written notice or by updating their manual.
Crave Cookies negotiates purchase arrangements with suppliers, potentially benefiting franchisees through better pricing. For example, they have negotiated contracts for items like chocolate, butter, and containers, which they estimate save franchisees up to 46%. Crave Cookies also receives payments from designated suppliers based on franchisee purchases. The FDD states that required purchases and leases to establish and operate the business are estimated to be 50% to 80% of the franchisee's total purchases and leases. In the prior fiscal year, Crave Cookies's revenue from all required purchases and leases of products and services by franchisees was $632,828, while their total revenue was $2,413,050.
This system is common in franchising, allowing franchisors to maintain quality control and brand consistency. However, it also means franchisees are dependent on Crave Cookies's negotiated arrangements and supplier approvals, which could impact their costs and profitability. Prospective franchisees should carefully consider these restrictions and discuss supplier arrangements with existing franchisees during their due diligence.