Can Crave engage in price-related activities in certain geographic areas or with certain subsets of Crave franchisees and not others?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
7.12 Pricing
Where permitted by applicable law, we may provide you written advice regarding the maximum prices which you may charge your customers for menu items, products and services provided or sold under the System. Any such advice, if given at all, will be binding on you and you agree to comply with our pricing guidelines. Nothing contained herein shall be deemed a representation by us that if you follow such guidelines you will, in fact, generate a profit. You are obligated to inform us of all prices charged for products sold by you and to inform us of any modifications of your prices. We may exercise rights with respect to pricing programs and productsto the fullest extent permitted by then-applicable law. These rights may include (without limitation) establishing the maximum retail prices which you may charge customers for the programs or products offered and sold at your Franchised Business; recommending retail prices; advertising specific retail prices for some or all programs, products or sold by your Franchised Business, which prices you agree to observe (sometimes known as "price point advertising campaigns"); engaging in advertising, promotional and related programs which you must participate in and which may directly or indirectly impact your retail prices (such as "buy one, get one free"); and otherwise mandating, directly or indirectly, the maximum retail prices which your Franchised Business may charge the public for the programs, products and services it offers. We may engage in any such activity at any time throughout the term of this Agreement. Further, we may engage in such activity only in certain geographic areas (towns, cities, states, regions) and not others, or with regard to certain subsets of franchisees and not others. You acknowledge and agree that any maximum
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, Crave has the right to implement different pricing strategies in different areas or for different franchisees. Crave may provide written advice regarding maximum prices, which franchisees must follow where permitted by law. Franchisees are obligated to inform Crave of all prices charged and any modifications to those prices.
Crave’s rights include establishing maximum retail prices, recommending retail prices, advertising specific retail prices, and mandating maximum retail prices. These activities can also include promotional programs like "buy one, get one free" that impact retail prices.
Importantly, Crave can choose to implement these pricing activities in specific geographic areas or with specific groups of franchisees, and not others. This allows Crave to test different pricing strategies or respond to local market conditions without applying the same rules across the entire franchise system. This also means that one Crave franchisee could be subject to price controls while another is not.