What authorization does Crave require franchisees to provide to allow the disclosure of financial information by banks, suppliers, and other entities?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
l not preclude us
from questioning the correctness thereof at any time and, in the event that any inconsistencies or mistakes are discovered in such statements or payments, they shall immediately be rectified by you and the appropriate payment shall be made by you.
11.5 Authorization of Us
You hereby authorize (and agree to execute any other documents deemed necessary to effect such authorization) all banks, financial institutions, businesses, suppliers, manufacturers, contractors, vendors and other persons or entities with which you do business to disclose to us any requested financial information in their possession relating to you or the Franchised Business. You authorize us to disclose data from your reports, if we determine, in our sole and absolute discretion, that such disclosure is necessary or advisable, which disclosure may include disclosure to prospective or existing franchisees or other third parties, and you acknowledge and agree that such disclosure may include publishing of the financial performance of your Franchised Business in franchise disclosure document(s) issued by us following the Effective Date hereof.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, franchisees must authorize Crave to obtain financial information from banks, financial institutions, suppliers, and other entities with which the franchisee does business. This authorization includes executing any documents Crave deems necessary to effect such authorization. This allows these entities to disclose any requested financial information in their possession related to the franchisee or the franchised business.
Furthermore, Crave is authorized to disclose data from the franchisee's reports if Crave determines, in its sole discretion, that such disclosure is necessary or advisable. This disclosure may include sharing information with prospective or existing franchisees or other third parties. The FDD states that such disclosure may include publishing the financial performance of the franchisee's business in franchise disclosure documents issued by Crave after the effective date of the agreement.
In addition to authorizing the release of financial information, the franchisee also appoints Crave as their attorney-in-fact. This appointment grants Crave the power to obtain any and all returns and reports filed by the franchisee with any state and/or federal taxing authority pertaining to the franchised business. This power of attorney survives the expiration or termination of the Franchise Agreement.