What are the three main sources of revenue for Crave Cookies?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
Note 2: Revenue from Contracts with Customers
Performance Obligations
The Company derives its revenues principally from three main sources: 1) franchise fees and royalties, 2) service sales, and 3) product sales.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, the company's revenue is derived from three primary sources. These are franchise fees and royalties, service sales, and product sales. This indicates that Crave Cookies generates income not only from the initial fees and ongoing royalties paid by franchisees but also from providing services and selling products.
For a prospective franchisee, understanding these revenue streams is crucial. Franchise fees are typically one-time payments made at the start of the franchise agreement, while royalties are ongoing payments, often a percentage of sales. Service sales could include support, training, or other services provided to franchisees. Product sales likely refer to the sale of goods or supplies to franchisees, which are necessary for operating the Crave Cookies business.
Knowing the breakdown of these revenue sources can help a franchisee understand how Crave Cookies generates its income and what the company relies on for financial stability. It also provides insight into the potential costs and ongoing obligations for the franchisee, such as royalty payments and the purchase of required products. This information is essential for making an informed decision about investing in a Crave Cookies franchise.