What are the two ways the Crave Cookies franchise agreement can specify the maximum advertising expense?

According to Crave Cookies' 2025 Franchise Disclosure Document, specifically the Maryland Rider to the Franchise Agreement and Multi-Unit Development Agreement, there are two ways the franchise agreement can specify the maximum advertising expense. These include specifying the maximum percentage of gross monthly sales that the franchisee may be required to pay, or specifying the maximum absolute sum that the franchisee may be required to pay. This ensures that franchisees are not subjected to indeterminate advertising expenses.

This provision is particularly relevant for prospective Crave Cookies franchisees in Maryland, as it directly addresses and modifies the standard franchise agreement to comply with Maryland law. It protects franchisees from potentially open-ended or unpredictable advertising costs, providing a clear financial boundary for their contributions to advertising campaigns, promotional activities, and materials.

Many franchise systems require franchisees to contribute to advertising funds, but the method of determining these contributions can vary. By setting a maximum limit, either as a percentage of sales or a fixed amount, Crave Cookies provides franchisees with greater financial predictability and control. This can help franchisees better manage their cash flow and budget for other essential business expenses. Franchisees should carefully review the specific terms outlined in the franchise agreement and any state-specific riders to fully understand their obligations and rights regarding advertising expenses.