Does Crave's approval of a prospective site guarantee the profitability or success of the Crave Franchised Business at that site?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
You acknowledge and agree that our approval of a location for the Franchised Business is not a warranty or guaranty, express or implied, that you will achieve any particular level of success at the location or that your Restaurant will be profitable. Our approval of a location for the Restaurant only signifies that the location meets our then-current minimum criteria for a Crave Restaurant.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, Crave's approval of a location for a franchised business does not guarantee its success or profitability. While Crave reviews the site selection to ensure it meets their standards, this approval only signifies that the location meets their minimum criteria at that time. Franchisees bear the ultimate responsibility for the performance and obligations of their business.
Crave requires franchisees to locate a site that meets the franchisor's guidelines within 90 days of signing the agreement. Franchisees must submit a description of the site and evidence that it meets Crave's criteria. Crave has 30 days to approve or decline the proposed site and may conduct an on-site evaluation. The franchisor also retains the right to approve deviations from their standard site selection criteria based on individual factors.
Prospective Crave franchisees should understand that site approval is not a guarantee of financial success. It is crucial to conduct thorough market research, develop a solid business plan, and manage the business effectively to achieve profitability. Franchisees should not rely solely on Crave's approval but should also consider their own due diligence and assessment of the location's potential.