Is Crave's designation of maximum pricing a guarantee of specific sales or profitability for a Crave franchise?
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 may designate the maximum prices a franchisee can charge, as permitted by law. However, Crave explicitly states that setting these maximum prices does not guarantee any specific level of sales or profitability for the franchisee. This means that while Crave might control the upper limit of pricing, the franchisee's actual revenue and profits are subject to market conditions, operating costs, and other factors.
For a prospective Crave franchisee, this is an important consideration. While the franchisor may offer guidance or restrictions on pricing, it is ultimately the franchisee's responsibility to manage their business in a way that achieves profitability. Factors such as local competition, cost of goods, and operational efficiency will all play a significant role in determining the financial success of the franchise.
This disclaimer is typical in franchise agreements. Franchisors often provide pricing recommendations or guidelines, but they generally avoid guaranteeing specific financial outcomes due to the many variables involved in running a business. Prospective franchisees should carefully evaluate the potential market in their area and develop a comprehensive business plan to assess the viability of a Crave franchise, irrespective of any pricing suggestions from Crave.