What is a 'Required Vendor' in the Crave Cookies franchise agreement?

According to Crave Cookies' 2025 Franchise Disclosure Document, a 'Required Vendor' is defined as a supplier, vendor, or distributor of inputs that Crave Cookies Franchising mandates its franchisees to use. This means that as a franchisee, you may be obligated to purchase certain goods or services, such as ingredients or equipment, exclusively from vendors approved or designated by Crave Cookies.

This requirement ensures consistency and quality control across all Crave Cookies locations, as the franchisor can standardize the inputs used in the business. However, it also limits the franchisee's autonomy in choosing suppliers and potentially negotiating better prices or terms. Franchisees are expected to adhere to these vendor requirements as part of the System Standards.

If a franchisee wishes to use an alternate vendor, they must submit a written request for approval to Crave Cookies Franchising, including any information, specifications, or samples requested. Crave Cookies Franchising has the discretion to approve or disapprove the request based on criteria such as the vendor's capacity, quality, financial stability, reputation, and reliability. Crave Cookies Franchising will provide written notification of the approval or disapproval within 30 days of receiving the request.

Crave Cookies also retains the right to negotiate prices and terms with vendors on behalf of the entire franchise system and may receive rebates or other considerations from these vendors based on franchisee purchases. They may also implement a centralized purchasing system or establish a purchasing cooperative that franchisees are required to join. While this can streamline the purchasing process, franchisees should be aware that Crave Cookies will not be liable for any claims or losses related to products or services provided by approved or required vendors, including defects, delays, or unavailability.