Is Crave currently involved in any legal matters that management believes would require disclosure to potential franchisees?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
- To be added to Item 3 of the Disclosure Document, is the following statement:
There are presently no arbitration proceedings to which the Franchisor is a party.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
The 2025 FDD for Crave does not contain any information in Item 3 regarding current involvement in legal matters that would require disclosure to potential franchisees, with the exception of the state of Indiana. For the state of Indiana, the FDD states that there are currently no arbitration proceedings to which Crave is a party.
It is standard practice for franchisors to disclose any material pending or prior litigation in Item 3 of the FDD. This disclosure allows potential franchisees to assess the risks associated with investing in the franchise. The absence of such disclosure may indicate that Crave is not currently involved in any legal disputes that would be considered material to a franchisee's investment decision, at least outside of Indiana.
However, the FDD only reflects the legal status at the time of its publication. Prospective franchisees should consider asking Crave for an update on any legal matters that may have arisen since the FDD was issued. This inquiry should cover not only formal lawsuits but also any ongoing investigations or regulatory actions that could potentially impact the franchise system.