What is the consequence if a Crave franchisee fails to acquire an Accepted Location within the specified timeframe?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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. We reserve the right to approve deviations from our site selection standards based on the individual factors and components of a particular site, but any such approvals shall be granted in our sole discretion. If you are unable to locate a site for your Restaurant within ninety (90) days after this Agreement is executed, we may provide you with an extension of this timeframe or we may terminate this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, a franchisee has 90 days from the franchise agreement's execution to find a site that meets Crave's guidelines. The franchisee must submit a description of the site and evidence that it meets Crave's site selection criteria. Crave then has 30 days to approve or decline the proposed site. Crave may also conduct an on-site evaluation. The document specifies that the franchisee cannot use a site unless Crave approves it in writing.
Crave's approval of a location does not guarantee the franchisee's success or profitability. It only signifies that the location meets Crave's minimum criteria at the time. Crave retains the right to approve deviations from its site selection standards at its discretion.
If a franchisee fails to locate a site within the initial 90-day period, Crave has two options: it may grant an extension to the franchisee, or it may terminate the franchise agreement. This means a prospective Crave franchisee could lose the opportunity to open a franchise if they cannot secure an approved location in a timely manner.