Must all sales for a Crave Cookies franchise be made at the physical premises of the franchise?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.7 Method of Sale. Franchisee shall make sales only at the Location or by off-site catering services, or at temporary event locations (e.g. street festivals). Unless otherwise approved or required by Crave Cookies Franchising, LLC, Franchisee shall not make sales by any other means, including without limitation by delivery by Franchisee, delivery by third-party service, via a food truck, or at satellite locations. Crave Cookies Franchising, LLC retains the right to determine (and to change at any time) a territory outside of which Franchisee cannot offer catering. If Crave Cookies Franchising, LLC permits (or requires delivery), Crave Cookies Franchising, LLC retains the right to determine (and to change at any time) a territory outside of which Franchisee cannot offer delivery.
- 7.8 Royalty on Third-Party Delivery Service. 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.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 34)
What This Means (2025 FDD)
According to Crave Cookies's 2025 Franchise Disclosure Document, franchisees are generally required to make sales at the physical location of their business. However, the document specifies exceptions to this rule. Franchisees can also make sales through off-site catering services or at temporary event locations such as street festivals.
Importantly, franchisees are restricted from using other sales methods unless specifically approved or required by Crave Cookies. These prohibited methods include direct delivery by the franchisee, delivery via third-party services, sales from a food truck, or at satellite locations. Crave Cookies retains the right to determine and modify the territories where franchisees can offer catering or delivery services.
If Crave Cookies requires or approves the use of a third-party delivery service, the royalty calculation will be based on the amount the customer pays to the delivery service, excluding any delivery fees, service charges, or gratuities. This distinction is important for franchisees to understand, as it affects the calculation of gross sales for royalty purposes.