What are the consequences if a Crave franchisee fails to meet their obligations (Item 9) regarding restrictions on suppliers (Item 8)?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
You must purchase or lease and install all fixtures, furnishings, equipment (including point-of-sales system and associated hardware and software), décor items, signs and related items we require, all of which must conform to the standards and specifications stated in our Confidential Operations Manual (the "Manual") or otherwise in writing, unless you have first obtained our written consent to do otherwise. You may not install or permit to be installed on the Restaurant premises, or on or in the Food Truck, any fixtures, furnishings, equipment, décor items, signs, games, vending machines or other items without our written consent or that do not comply with our specifications.
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 regarding the sources of products and services. Item 8 outlines that franchisees must purchase or lease all fixtures, furnishings, equipment, decor items, and signs that conform to Crave's standards and specifications, as detailed in the Confidential Operations Manual. Any deviation from these standards requires prior written consent from Crave.
To ensure quality and service, franchisees must operate their business in strict accordance with Crave's methods, standards, and specifications. This includes maintaining sufficient supply and using only approved food and beverage items, ingredients, products, materials, supplies, and paper goods. All menu items must be prepared according to specified recipes and procedures. Franchisees cannot deviate from these standards by using non-conforming items or differing amounts without written consent. Crave retains the right to modify these standards and specifications, providing notice of any changes in writing.
Crave or its agents may, during normal business hours, remove samples of food or non-food items from the franchisee's inventory for testing to ensure compliance with current standards. If a franchisee uses a supplier not previously approved by Crave, or if the sample fails to meet specifications, Crave may require the franchisee to reimburse the costs of testing. This is in addition to any other remedies Crave may have, indicating that non-compliance can lead to further penalties or corrective actions as outlined in the franchise agreement.
In summary, failing to comply with Crave's restrictions on sources of products and services can result in financial penalties, required corrective actions, and potential further remedies as specified in the franchise agreement. Franchisees must maintain strict adherence to the brand's standards to avoid these consequences.