When are royalty and marketing fees due to Crave Cookies?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
Revenues from continuing fees, including royalties, marketing fees and upfront franchise fees. The Company receives a monthly royalty fee equal to 6% and monthly marketing fee equal to 2% of the franchisees weekly gross sales due the following Tuesday. These royalty payments are considered to be variable consideration; however, the Company relies on a narrow exception to the variable consideration criteria where there is a sales-based or usage-based royalty and marketing. Under this exception, the Company recognizes revenue for sales-based royalty and marketing revenue on a monthly basis based on sales reports by their franchisees.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies's 2025 Franchise Disclosure Document, the company collects a monthly royalty fee equal to 6% and a monthly marketing fee equal to 2% of the franchisee's weekly gross sales. These fees are due the following Tuesday.
This means that as a Crave Cookies franchisee, you will need to calculate your gross sales each week and remit 8% of that amount (6% for royalties and 2% for marketing) to Crave Cookies the following Tuesday. This payment schedule is relatively frequent compared to some other franchises that may collect royalties monthly or quarterly.
Crave Cookies recognizes revenue for these sales-based royalty and marketing fees on a monthly basis, relying on sales reports submitted by franchisees. This system depends on the accuracy and timeliness of the sales reports provided by the franchisees. Franchisees should ensure they have systems in place to accurately track and report gross sales to comply with the franchise agreement.