When are the 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' 2025 Franchise Disclosure Document, the company receives 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 weekly sales and remit 8% of that amount (6% for royalties and 2% for marketing) to Crave Cookies every Tuesday. This payment schedule is based on the previous week's sales, ensuring that Crave Cookies receives a consistent stream of revenue tied directly to your store's performance.
The FDD specifies that these royalty and marketing payments are considered variable consideration, which is typical in franchising. This arrangement aligns the franchisor's income with the franchisee's sales, incentivizing Crave Cookies to support and promote the success of its franchisees. The company recognizes revenue for these fees monthly, based on the sales reports submitted by franchisees.