factual

Does Crave's approval of a site guarantee the success or profitability of the Franchised Business?

Crave Franchise · 2025 FDD

Answer from 2025 FDD Document

ot constitute a representation, promise, warranty or guarantee, express or implied, by us that the Franchised Business operated at that site will be profitable or otherwise successful.

2.2 Site Selection

  • 2.2.1 If you do not already have possession of a location that we have approved upon your execution of this Agreement, then within ninety (90) days of the date this Agreement is executed you shall locate a site for the Restaurant that satisfies the site selection guidelines provided to you by us pursuant to Section 5.1 and submit to us in the form specified by us a description of the site, including evidence reasonably satisfactory to us demonstrating that the site satisfies our site selection guidelines, together with such other information and materials as we may reasonably require, including, but not limited to, a letter of intent or other evidence satisfactory to us which confirms your favorable prospects for obtaining the site. We shall have thirty (30) days after receipt of this information and materials to approve or decline, in our sole discretion, the proposed site as the location for the Restaurant. We may, if we determine it is necessary, conduct one (1) on-site evaluation of the proposed location for the Restaurant. No site may be used for the location of the Restaurant unless it is first approved in writing by us. 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, the franchisor's approval of a site does not guarantee the success or profitability of the Franchised Business. Crave states that while they will review a franchisee's site selection for conformity to their standards, this review does not act as a warranty or guarantee of success.

Crave emphasizes that the franchisee acknowledges and agrees that the franchisor's 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. The approval only signifies that the location meets Crave's then-current minimum criteria for a Crave Restaurant.

This is a typical clause in franchise agreements. Site selection is a complex process, and while franchisors offer guidance, the ultimate success of a location depends on numerous factors outside of the franchisor's control, including local market conditions, competition, and the franchisee's management skills. Prospective Crave franchisees should carefully research their chosen location and develop a comprehensive business plan to assess the potential for success.

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.