As of the effective date of the Crave Franchise Disclosure Document, is the franchise registration effective or pending in the state of New York?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
The following states have franchise laws that require that the Franchise Disclosure Document be registered or filed with the states, or be exempt from registration: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin.
This document is effective and may be used in the following states, where the document is filed, registered, or exempt from registration, as of the Effective Date stated below:
ADDENDUM REQUIRED BY THE DEPARTMENT OF LAW OF THE STATE OF NEW YORK
- The following information is added to the cover page of the Franchise Disclosure Document:
INFORMATION COMPARING FRANCHISORS IS AVAILABLE. CALL THE STATE ADMINISTRATORS LISTED IN EXHIBIT G OR YOUR PUBLIC LIBRARY FOR SOURCES OF INFORMATION. REGISTRATION OF THIS FRANCHISE BY NEW YORK STATE DOES NOT MEAN THAT NEW YORK STATE RECOMMENDS IT OR HAS VERIFIED THE INFORMATION IN THIS FRANCHISE DISCLOSURE DOCUMENT. IF YOU LEARN THAT ANYTHING IN THE FRANCHISE DISCLOSURE DOCUMENT IS UNTRUE, CONTACT THE FEDERAL TRADE COMMISSION AND NEW YORK STATE DEPARTMENT OF LAW, INVESTOR PROTECTION BUREAU, 28 LIBERTY STREET, 21ST FLOOR, NEW YORK, NEW YORK, 10005. THE FRANCHISOR MAY, IF IT CHOOSES, NEGOTIATE WITH YOU ABOUT ITEMS COVERED IN THE FRANCHISE DISCLOSURE DOCUMENT. HOWEVER, THE FRANCHISOR CANNOT USE THE NEGOTIATING PROCESS TO PREVAIL UPON A PROSPECTIVE FRANCHISEE TO ACCEPT TERMS WHICH ARE LESS FAVORABLE THAN THOSE SET FORTH IN THIS FRANCHISE DISCLOSURE DOCUMENT.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, New York is one of the states that requires the Franchise Disclosure Document to be registered or filed with the state, or be exempt from registration. The document is effective and may be used in New York as of the effective date stated in the document, implying that Crave's franchise registration is effective in New York.
Additionally, the FDD includes an addendum required by the Department of Law of the State of New York, which provides additional information for prospective franchisees in New York. This addendum includes a statement that registration of the franchise by New York State does not mean that New York State recommends it or has verified the information in the Franchise Disclosure Document. It also provides contact information for the New York State Department of Law, Investor Protection Bureau, should a franchisee learn that anything in the Franchise Disclosure Document is untrue.
Furthermore, the addendum states that Crave may, if it chooses, negotiate with prospective franchisees about items covered in the Franchise Disclosure Document. However, Crave cannot use the negotiating process to prevail upon a prospective franchisee to accept terms which are less favorable than those set forth in the Franchise Disclosure Document. This ensures that franchisees in New York are protected from unfair negotiating practices.