When are the royalty fees due for a Crave Cookies franchise?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty | 6% of your gross sales | Twice monthly, on the 1st and the 16th | See Note 1 and Note 2. |
Notes
"Gross Sales" is defined in our franchise agreement as the total dollar amount of all sales generated through your business for a given period, including, but not limited to, payment for any services or products sold by you, whether for cash or credit. Gross Sales does not include (i) tips, (ii) sales taxes collected, (iii) sales of prepaid cards or similar products (but the redemption of any such card or product will be included in Gross Sales). If Crave Cookies Franchising, LLC requires or approves Franchisee's use of a third-party delivery service, Gross Sales on deliveries will be calculated on the amount paid by the customer to the delivery service (not counting any delivery fee, service charge, or gratuity paid by the customer), rather than the amount paid by the delivery service to Franchisee.
We currently require you to pay royalty fees and other amounts due to us by pre-authorized bank draft initiated by us. However, we can require an alternative payment method.
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2025 FDD)
According to Crave Cookies's 2025 Franchise Disclosure Document, the royalty fees are due twice monthly. Specifically, these payments, which amount to 6% of gross sales, are due on the 1st and the 16th of each month. The FDD also states that Crave Cookies currently requires franchisees to pay royalty fees and other amounts due via pre-authorized bank draft initiated by them, but they can require an alternative payment method.
It is important to note that "Gross Sales" is defined in the franchise agreement as the total dollar amount of all sales generated through the franchisee's business for a given period, including payments for any services or products sold, whether for cash or credit. However, gross sales do not include tips, sales taxes collected, or sales of prepaid cards. The redemption of any such card or product will be included in Gross Sales. If Crave Cookies requires or approves the franchisee's use of a third-party delivery service, gross sales on deliveries will be calculated on the amount paid by the customer to the delivery service (not counting any delivery fee, service charge, or gratuity paid by the customer), rather than the amount paid by the delivery service to the franchisee.
Prospective franchisees should be aware that Crave Cookies can change the payment method for royalty fees. Franchisees should ensure they understand how gross sales are calculated, especially if they plan to use third-party delivery services. Understanding these details is crucial for accurate financial planning and compliance with the franchise agreement.