What is the role of the 'Principal Executive' designated on the Summary Page for a Crave Cookies franchise?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees that the person designated as the "Principal Executive" on the Summary Page is the executive primarily responsible for the Business and has decision-making authority on behalf of Franchisee. The Principal Executive must have at least 10% ownership interest in Franchisee. The Principal Executive does not have to serve as a day-to-day general manager of the Business, but the Principal Executive must devote substantial time and attention to the Business. If the Principal Executive dies, becomes incapacitated, transfers his/her interest in Franchisee, or otherwise ceases to be the executive primarily responsible for the Business, Franchisee shall promptly designate a new Principal Executive, subject to Crave Cookies Franchising's reasonable approval.
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, the Principal Executive plays a crucial role in the operation of the franchise. The individual designated as the "Principal Executive" on the Summary Page is the executive primarily responsible for the Crave Cookies business and possesses decision-making authority on behalf of the franchisee. This person must maintain at least a 10% ownership interest in the franchise.
While the Principal Executive is not required to be the day-to-day general manager, they must devote substantial time and attention to the business. This implies that the Principal Executive needs to be actively involved in overseeing the franchise's performance and ensuring its alignment with Crave Cookies' standards and objectives.
Furthermore, the FDD stipulates that if the Principal Executive's role changes due to death, incapacitation, transfer of interest, or any other reason, the franchisee must promptly designate a new Principal Executive, subject to Crave Cookies Franchising's approval. Additionally, both the Principal Executive and the General Manager, if applicable, must complete Crave Cookies' training program to the franchisor's satisfaction before the business opens. The business must also be under the supervision of the Principal Executive or a local general manager who has completed Crave Cookies' training program.