factual

Under what conditions does Crave Cookies have the right to determine prices charged by franchisees?

Crave_Cookies Franchise · 2025 FDD

Answer from 2025 FDD Document

We will provide recommended prices for products and services. (Section 5.5). We have the right to determine prices charged by our franchisees for menu items, beverages, goods and services (but only to the extent permitted by applicable law).

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 22–29)

What This Means (2025 FDD)

According to Crave Cookies' 2025 Franchise Disclosure Document, Crave Cookies provides recommended prices for products and services. However, Crave Cookies retains the right to determine the prices franchisees charge for menu items, beverages, goods, and services, but this right is limited to the extent permitted by applicable law.

This means that while Crave Cookies offers pricing suggestions, they can ultimately set the prices franchisees must charge. This control allows Crave Cookies to maintain brand consistency and potentially ensure profitability across all locations. However, the phrase "but only to the extent permitted by applicable law" is important. Franchisees need to understand what pricing regulations might exist in their specific area that could limit Crave Cookies' ability to dictate prices.

For a prospective franchisee, this condition highlights the importance of understanding local pricing laws and how they might interact with the franchise agreement. It would be prudent to consult with a legal professional to fully grasp the implications of this pricing control and ensure compliance with all applicable regulations. This also means that franchisees may have limited flexibility in responding to local market conditions or competitive pressures through pricing adjustments.

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.