Can Crave designate the maximum prices a franchisee may charge?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Designate the maximum prices you may charge, as permitted by applicable law. (Franchise Agreement, Section 7.13.) Our designation of the maximum pricing is not a guarantee that you will achieve a specific level of sales or profitability.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 32–42)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, Crave can designate the maximum prices a franchisee may charge, as permitted by applicable law. However, Crave's designation of maximum pricing does not guarantee that a franchisee will achieve a specific level of sales or profitability.
This means that while Crave can set a ceiling on prices, franchisees need to be aware that this pricing strategy doesn't assure any particular level of financial success. Franchisees must still manage their costs and operations effectively to achieve profitability within the set pricing structure.
This policy is not uncommon in franchising, as franchisors often want to ensure brand consistency and perceived value across all locations. However, franchisees should carefully consider whether the maximum prices allowed by Crave will enable them to operate profitably in their specific market, considering local costs and competition.