Must all sales for a Crave Cookies franchise be made from 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' 2025 Franchise Disclosure Document, franchisees are generally required to make sales only at the physical location of their business. However, there are exceptions to this rule. Crave Cookies franchisees can also make sales through off-site catering services or at temporary event locations such as street festivals.
Franchisees are restricted from making sales through other means unless specifically approved or required by Crave Cookies. Prohibited sales methods include wholesale, delivery services operated by the franchisee, mail order, internet sales, sales via a food truck, or sales at satellite locations. Crave Cookies retains the right to determine and change the territory in which a franchisee can offer catering or delivery services if these are permitted or required.
If Crave Cookies requires or approves the use of a third-party delivery service, the gross sales calculation for royalty purposes is based on the amount the customer pays to the delivery service, excluding any delivery fees, service charges, or gratuities. This distinction is important for calculating the royalties owed to Crave Cookies on delivery sales.