factual

Does Crave assume any additional liability or obligation to the franchisee or any third party by providing any waiver, approval, advice, consent, or services in connection with the Franchise Agreement?

Crave Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 3.4 You acknowledge that the approval of a particular site for a Franchised Business by us shall not be deemed to be an assurance or guaranty that the Franchised Business will operate successfully

Source: Item 23 — RECEIPTS (FDD pages 63–253)

What This Means (2025 FDD)

Based on the 2025 FDD, Crave's approval of a site for a Franchised Business does not guarantee the success of the business. Crave offers services such as reviewing site selections to ensure they meet the company's standards. However, franchisees acknowledge that Crave's requirement for certification does not equate to ownership, control, or operation of the Franchised Business. Franchisees are responsible for compliance with the Americans with Disabilities Act and must indemnify Crave against any claims arising from non-compliance.

Furthermore, franchisees must obtain and maintain insurance policies, naming Crave as an additional insured, and agree to waive rights of subrogation against Crave. Crave can modify the minimum insurance coverage requirements annually to reflect inflation or market conditions. Franchisees are also responsible for builders' risks insurance and performance and completion bonds during construction or remodeling.

In essence, while Crave provides certain services and approvals, the franchisee bears the ultimate responsibility for the business's operations, compliance, and financial obligations. The franchisee also acknowledges that they are an independent entity and are responsible for the business's performance. This is a fairly standard arrangement in franchising, where the franchisee operates independently while adhering to the franchisor's system and standards.

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.