What costs is the Crave franchisee solely responsible for related to performance, nonperformance, and enforcement of the agreement?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
7.4 You have sole responsibility for the performance of all obligations arising out of the operation of your business pursuant to this Agreement, including, but not limited to, the payment when due of any and all taxes levied or assessed by reason of such operation.
7.7 You shall comply with all requirements of federal, state and local laws, rules and regulations.
CRAVE Franchising, LLC ("Franchisor") and ("Franchisee") are parties , to for a the Franchise operation Agreement of dated a Crave restaurant at (the "Franchised Business"). In accordance with Article 2 of the Franchise Agreement, Franchisee certifies to Franchisor that, to the best of Franchisee's knowledge, the Franchised Business and its adjacent areas comply with all applicable federal, state and local accessibility laws, statutes, codes, rules, regulations and standards, including but not limited to the Americans with Disabilities Act. Franchisee acknowledges that it is an independent licensee and the requirement of this certification by Franchisee does not constitute ownership, control, leasing or operation of the Franchised Business. Franchisee acknowledges that Franchisee has relied on the information contained in this certification. Furthermore, Franchisee acknowledge its obligation under this Franchise Agreement directors, to and indemnify employees of and the in officers, connection with any and all claims, losses, costs, expenses, liabilities, compliance costs, and damages incurred by the indemnified party(ies) as a result of any matters associated with Franchisee's compliance with the Americans with Disabilities Act, as well as the costs, including attorneys' fees, related to the same.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the franchisee is responsible for all obligations arising from the operation of their business. This includes the payment of all taxes levied or assessed due to the business's operation. This means that Crave franchisees must ensure they budget for and pay all applicable federal, state, and local taxes related to their restaurant.
Additionally, the franchisee is obligated to comply with all federal, state, and local laws, rules, and regulations. This encompasses a wide range of legal requirements, from health and safety codes to employment laws. Failure to comply with these regulations can result in fines, penalties, and legal action, for which the franchisee would be solely responsible.
Furthermore, the franchisee is responsible for compliance with the Americans with Disabilities Act (ADA) and must indemnify Crave against any claims, losses, costs, expenses, liabilities, compliance costs, and damages resulting from non-compliance. This includes all associated costs, such as attorney's fees. This means that Crave franchisees must ensure their restaurants are accessible to individuals with disabilities and be prepared to cover any expenses arising from ADA-related issues.