factual

Under what conditions can Crave Cookies require a franchisee to participate in advertising or promotional campaigns?

Crave_Cookies Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (11) Requiring the franchisee to participate in any (A) advertising campaign or contest; (B) promotional campaign; (C) promotional materials; or (D) display decorations or materials; at an expense to the franchisee that is indeterminate, determined by a third party, or determined by a formula, unless the franchise agreement specifies the maximum percentage of gross monthly sales or the maximum absolute sum that the franchisee may be required to pay.

Source: Item 23 — RECEIPTS (FDD pages 47–194)

What This Means (2025 FDD)

According to Crave Cookies' 2025 Franchise Disclosure Document, specifically the Maryland Rider to the Franchise Agreement, there are limitations on requiring franchisee participation in advertising or promotional campaigns. Crave Cookies cannot mandate franchisee participation in advertising campaigns, contests, promotional campaigns, promotional materials, or display decorations/materials if the expense to the franchisee is indeterminate, determined by a third party, or determined by a formula.

However, Crave Cookies can require participation if the franchise agreement specifies the maximum percentage of gross monthly sales or the maximum absolute sum that the franchisee may be required to pay. This means that the agreement must clearly define the financial limits of the franchisee's contribution to these campaigns.

This provision protects franchisees from potentially unlimited or unpredictable advertising expenses. Prospective Crave Cookies franchisees should carefully review the franchise agreement to understand the specific terms related to advertising and promotional contributions, ensuring that any required participation is clearly defined and capped within reasonable limits.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.