factual

What are some of the distinguishing characteristics of the Crave system?

Crave Franchise · 2025 FDD

Answer from 2025 FDD Document

together "Gift Cards") that have been prepared utilizing the standard form of Gift Card provided or designated by us, and only in the manner specified by us in the Manual or otherwise in writing, and pay any fees required in relation to implementing and maintaining the Gift Card program. You shall fully honor all Gift Cards that are in the form provided or approved by us regardless of whether a Gift Card was issued by you or another Crave business. You shall sell, issue, and redeem (without any offset against any Royalty Fees) Gift Cards in accordance with procedures and policies specified by us in the Manual or otherwise in writing, including those relating to procedures by which you shall request reimbursement for Gift Cards issued by other Crave businesses and for making timely payment to us, other operators of Crave businesses, or a third-party service provider for

Gift Cards issued from the Franchised Business that are honored by us or other Crave business operators. We reserve the right to alter the terms and conditions of any gift card or loyalty programs, including reserving the right to apply changes retroactively to benefits already accrued under such programs.

7.6 Proprietary Products

You acknowledge and agree that we and our affiliates may develop for use in the System certain products which are prepared from confidential proprietary recipes and which are trade secrets of us and our affiliates, and other proprietary products bearing the Marks. Because of the importance of quality and uniformity of production and the significance of such proprietary products in the System, it is to the mutual benefit of the parties that we closely control the production and distribution of such proprietary products. Accordingly, you agree that if such proprietary products become a part of the System, you shall use only our secret recipes and proprietary products and shall purchase all of your requirements for such proprietary products solely from us or from a source designated by us. You further agree to purchase from us or our designated supplier for resale to your customers proprietary products and other merchandise identifying the System as we shall require,such aslogoed merchandise, memorabilia and promotional products, in amounts sufficient to satisfy your customer demand.

7.7 Advertising and Promotional Materials

You shall require all advertising and promotional materials, signs, decorations, paper goods (including menus and all forms and stationery used in the Franchised Business), and other items which may be designated by us to bear the Marks in the form, color, location and manner prescribed by us, including, without limitation, notations about the ownership of the Marks.

7.8 Complaints

You shall process and handle all consumer complaints connected with or relating to the Franchised Business, and shall promptly notify us by telephone and in writing of all of the following complaints: (i) food related illnesses, (ii) environmental, safety or health violations, (iii) claims exceeding Five Hundred Dollars ($500), and (iv) any other material claims against or losses suffered by you. You shall maintain for our inspection any governmental or trade association inspection reports affecting the Franchised Business or equipment located in the Franchised Business during the term of this Agreement and for thirty (30) days after the expiration or earlier termination of this Agreement.

7.9 Assignment of Numbers and Listings

At our request, you shall execute such forms and documents as we deem necessary to appoint us as your true and lawful attorney-in-fact, with full power and authority, for the sole purpose of assigning to us, your telephone numbers and listings; and provide us with passwords and administrator rights for all email, software, social media, or other such accounts used or created by you in order to operate the Franchised Business. Upon the expiration or termination of this Agreement, we may exercise our authority, pursuant to such documents, to obtain any and all of your rights to the telephone numbers of the Franchised Business and all related telephone directory listings and other business listings, and all internet listings, domain names, internet advertising, websites, listings with search engines, electronic mail addresses, social media, or any other similar listing or usages related to the Franchised Business. You agree that you have no authority to and shall not establish any website or listing on the internet or world wide web without our express written consent, which consent may be denied without reason.

7.10 Customer Surveys

You shall participate in all customer surveys and satisfaction audits, which may require that you provide discounted or complimentary products, provided that such discounted or complimentary sales shall

not be included in the Gross Sales of the Franchised Business. Additionally, you shall participate in any complaint resolution and other programs as we may reasonably establish for the System, which programs may include, without limitation, providing discounts or refunds to customers.

7.11 Mystery Shopper Service

We may designate an independent evaluation service to conduct a "mystery shopper" quality control and evaluation program with respect to Franchised Businesses.

Source: Item 23 — RECEIPTS (FDD pages 63–253)

What This Means (2025 FDD)

According to Crave's 2025 Franchise Disclosure Document, several factors are in place to protect the goodwill and unique qualities of the Crave system. Franchisees must adhere to strict standards regarding proprietary products, advertising, and the use of trademarks. Crave maintains control over internet and e-commerce activities related to the brand. These measures ensure consistency and protect the brand's reputation.

Crave franchisees are required to use only secret recipes and proprietary products provided by Crave or designated sources. They must also purchase proprietary products and other branded merchandise from Crave or its designated supplier for resale to customers. All advertising, promotional materials, signs, and paper goods must bear Crave's marks in the prescribed form, color, location, and manner. This level of control ensures brand uniformity across all franchise locations.

Crave retains control over all internet, world wide web, and electronic commerce activities pertaining to the system. While Crave will provide a listing for the franchisee's business on its website, it may also provide a "click through" subpage for the promotion of the franchisee's business. Franchisees must provide updated content for their subpage as specified by Crave. This centralized control over online presence allows Crave to manage the brand image and customer experience consistently across all digital platforms.

Upon termination of the franchise agreement, franchisees must immediately stop using all confidential methods, software, procedures, and techniques associated with the Crave system. They must also cease using the "Crave" mark and all other marks and distinctive elements associated with the system. Franchisees are required to remove all signs, advertising materials, and design items displaying the marks and change all paint colors. Additionally, they must cancel any assumed name registrations containing the "Crave" mark. These strict requirements ensure a clean break and prevent any potential confusion or misuse of the brand after the franchise relationship ends.

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.