Does Crave charge a fee for evaluating a proposed new product or supplier?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
You understand and acknowledge that we may periodically receive payments from approved suppliers, such as in the form of rebates, based on such approved suppliers' sales of products and services to our franchisees. We reserve the right to direct that any supplier rebates, refunds, advertising allowances or other consideration payable or paid as a result of your purchases of non-proprietary goods, services or equipment be paid to us or any affiliate that we may designate. If we do so, then you hereby acknowledge that you will not assert any interest in such monies.
7.5 Operation of Franchised Business in Compliance with Our Standards
To ensure that the highest degree of quality and service is maintained, you shall operate the Franchised Business in strict conformity with such of our methods, standards and specifications set forth in the Manual and as may from time to time otherwise be prescribed in writing. In particular, you also agree:
7.5.1 To sell or offer for sale all menu items, products and services required by us and in the method, manner and style of distribution prescribed by us and only as expressly authorized by us in writing in the Manual or otherwise in writing.
7.5.2 To sell and offer for sale only the menu items, products and services that have been expressly approved for sale in writing by us; to refrain from deviating from our standards and specifications without our prior written consent; and to discontinue selling and offering for sale any menu items, products or services which we may, in our sole discretion, disapprove in writing at any time.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, franchisees may need to have proposed suppliers evaluated. The FDD states that Crave requires samples from the supplier to be delivered either to them or to an independent laboratory for testing. Crave retains the right to re-inspect the facilities and products of any approved supplier periodically and can revoke approval if the supplier fails to meet their current criteria. The document clarifies that Crave is not obligated to approve any particular supplier.
While the FDD does not explicitly state that Crave charges a fee for evaluating a proposed new product or supplier, it does state that the franchisee may be required to bear the cost of testing if the supplier of the items does not meet Crave's standards. This implies that there could be costs associated with ensuring that suppliers meet Crave's standards, which the franchisee might have to cover.
It is important to note that Crave may receive payments from approved suppliers in the form of rebates based on the suppliers' sales to franchisees. Crave reserves the right to direct that any supplier rebates, refunds, advertising allowances, or other consideration resulting from the franchisee's purchases of non-proprietary goods, services, or equipment be paid to Crave or any affiliate they designate. Franchisees acknowledge that they will not assert any interest in such monies.