When is the weekly royalty fee due to Crave Cookies Franchising?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
signing this Agreement, Franchisee shall pay an initial franchise fee in the amount stated on the Summary Page. This initial franchise fee is not refundable.
- 4.2 Royalty Fee. Franchisee shall pay Crave Cookies Franchising a weekly royalty fee (the "Royalty Fee") equal to 6% of Gross Sales. The Royalty Fee for any given week is due on the first Tuesday of the following week.
4.3 Marketing Contributions.
- (a) Marketing Fund Contribution. Franchisee shall pay Crave Cookies Franchising a contribution to the Marketing Fund (the "Marketing Fund Contribution") equal to 2% of Franchisee's Gross Sales, at the same time as the Royalty Fee.
- 4.4 Replacement / Additional Training Fee. If Franchisee sends an employee to Crave Cookies Franchising's training program after opening, Crave Cookies Franchising may charge its then-current training fee. As of the date of this Agreement, the training fee is $250 per person, per day.
- 4.5 Non-Compliance Fee. If Franchisee does not comply with Crave Cookies Franchising's policies, procedures System, or this Agreement (other than Franchisee's non-payment of a fee owed to Crave Cookies Franchising), Franchisee will be subject to fines and charges as set forth in Crave Cookies Franchising's Brand Standards Manual. These fines and charges for non-compliance are due upon receipt. These fees are a reasonable estimate of Crave Cookies Franchising's internal cost of personnel time attributable to addressing the non-compliance, and it is not a penalty or estimate of all damages arising from Franchisee's breach. The non-compliance fees are in addition to all of Crave Cookies Franchising's other rights and remedies (including default and termination under Section 14.2). Detailed information is in Attachment 4 of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies's 2025 Franchise Disclosure Document, the weekly royalty fee, which is 6% of Gross Sales, is due on the first Tuesday of the following week. This means that a franchisee must calculate their gross sales for the previous week and remit 6% of that amount to Crave Cookies every Tuesday.
In addition to the royalty fee, Crave Cookies franchisees must also pay a Marketing Fund Contribution equal to 2% of Gross Sales, which is due at the same time as the royalty fee. Franchisees are required to report their weekly Gross Sales to Crave Cookies by Tuesday of the following week. If a franchisee fails to report their weekly gross sales, Crave Cookies may withdraw estimated Royalty Fees and Marketing Fund Contributions equal to 125% of the last Gross Sales reported to Crave Cookies, and the parties will true-up the actual fees after Franchisee reports Gross Sales. Crave Cookies also has the right to remotely access the franchisee's point-of-sale system to calculate Gross Sales.
Crave Cookies requires that franchisees pay all fees via pre-authorized bank draft or in another manner that Crave Cookies may require. If a franchisee does not make a payment on time, they will incur a $100 late fee plus interest on the unpaid amount at a rate of 18% per year (or the highest rate allowed by law). Additionally, Crave Cookies may charge $30 for any payment returned due to insufficient funds. These payment terms and potential penalties highlight the importance of franchisees maintaining accurate sales records and ensuring timely payments to Crave Cookies.