factual

What is Crave's designation of maximum pricing for a Crave franchise subject to?

Crave Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. 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 may designate the maximum prices a franchisee can charge, as permitted by applicable law. However, Crave states that this designation is not a guarantee that the franchisee will achieve a specific level of sales or profitability.

This means that while Crave can set a ceiling on pricing, franchisees must still strategically manage their businesses to achieve desired financial outcomes. The franchisee is responsible for ensuring their pricing remains competitive and attractive to customers while adhering to Crave's maximum price guidelines.

This policy is fairly common in franchising, where franchisors seek to maintain brand consistency and value perception across all locations. However, franchisees should carefully consider their local market conditions and cost structures to determine if the maximum pricing allows for adequate profitability. It is important to note that Crave does not guarantee any specific level of sales or profitability based on this pricing designation.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.