What are the consequences if a Crave franchisee fails to meet their obligations (Item 9) regarding approved suppliers (Item 8)?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
To make sure that the highest degree of quality and service is maintained, you must operate the Franchised Business in strict conformity with the methods, standards, and specifications that we prescribe in the Manual or otherwise in writing. You must maintain in sufficient supply and use and sell at all times only those food and beverage items, ingredients, products, materials, supplies and paper goods that meet our standards and specifications. All menu items must be prepared in accordance with the recipes and procedures specified in the Manual or other written materials. You must not deviate from these standards and specifications by the use or offer of non-conforming items, or differing amounts of any items, without obtaining our written consent first. We can, and expect to, modify our standards and specifications as we deem necessary. We will provide you notice in the Manual or otherwise in writing (such as via email) of any changes in our standards and/or specifications.
You must permit us or our agents, during normal business hours, to remove a reasonable number of samples of food or non-food items from your inventory or from the Franchised Business free of charge for testing by us or by an independent laboratory to determine whether the samples meet our then-current standards and specifications. In addition to any other remedies we may have, we may require you to reimburse our costs for the testing if we have not previously approved the supplier of the item or if the sample fails to conform to our specifications.
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, franchisees must adhere to strict standards and specifications regarding the items they use and sell. Crave mandates that franchisees maintain sufficient stock and exclusively use food, beverage, ingredients, and supplies that meet the brand's standards. These items must be prepared according to Crave's recipes and procedures, with no deviations in ingredients or amounts without prior written consent.
Crave retains the right to inspect a franchisee's inventory during business hours, taking samples for testing to ensure compliance with current standards. If a franchisee is found to be using unapproved suppliers or items that do not meet specifications, Crave may require the franchisee to cover the costs of testing. This is in addition to any other remedies Crave may pursue under the Franchise Agreement.
In practical terms, this means a Crave franchisee must only source products from approved suppliers and strictly adhere to the brand's standards and recipes. Failure to do so can result in financial penalties, such as covering testing costs, and potentially other actions detailed in the Franchise Agreement. For a prospective franchisee, this highlights the importance of understanding and complying with Crave's supplier and product standards to avoid potential penalties and maintain the quality and consistency of the brand.