What does the Crave FDD state regarding the franchisor's ability to change the System?

The 2025 Crave FDD addresses the franchisor's ability to make changes to the franchise system, particularly concerning subsequent franchise agreements under a development rights agreement. Specifically, the FDD states that the Franchise Agreement for each additional Development Right exercised shall be the then-current Franchise Agreement, subject to any non-material changes therein which are required to be made by changes in any applicable law, regulation or ordinance in effect from time to time. This means that while the initial franchise agreement is set, any subsequent agreements for additional locations under a development rights agreement will be based on the then-current version of the Franchise Agreement.

This clause protects Crave by allowing it to adapt the franchise agreement to comply with changing legal and regulatory requirements. These changes are limited to those required by law, regulation, or ordinance and must be non-material. This ensures that Crave franchisees operating multiple locations under a development agreement are subject to the most up-to-date legal and regulatory standards.

For a prospective Crave franchisee, this means that if they plan to expand by exercising development rights, the terms of their later franchise agreements could differ slightly from the original, but only to the extent necessary to comply with then-current laws. It is important to note that these changes should be non-material, suggesting that the core business relationship and operational standards would remain consistent. Franchisees should stay informed about any legal or regulatory changes that could affect their franchise agreements and discuss any concerns with Crave.