What financial obligation does a Crave franchisee have during the term of the Franchise Agreement?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.4 You have sole responsibility for the performance of all obligations arising out of the operation of your business pursuant to this Agreement, including, but not limited to, the payment when due of any and all taxes levied or assessed by reason of such operation.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
Based on the 2025 Crave Franchise Disclosure Document, franchisees are responsible for the financial obligations arising from the operation of their business. Specifically, this includes the timely payment of all taxes levied or assessed due to their business operations. This obligation is a standard aspect of franchise agreements, ensuring that franchisees understand their responsibility for managing and covering all tax-related costs associated with running their Crave franchise.
This section of the Franchise Agreement emphasizes that Crave franchisees are independent business operators, solely responsible for their business's financial performance and legal compliance. Franchisees must ensure that all applicable taxes, including sales tax, income tax, and any other relevant taxes, are paid on time and in full. Failure to meet these obligations can result in penalties, legal issues, and potential damage to the franchisee's business and reputation.
Prospective Crave franchisees should carefully consider these financial obligations and consult with financial and legal advisors to fully understand their responsibilities. Proper financial planning and management are crucial for the success and sustainability of a Crave franchise. Franchisees should also stay informed about any changes in tax laws or regulations that may affect their business.