Does the Crave franchise agreement place any limitations on the cost of required computer upgrades?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
21.1.3 You shall record all sales on computer-based point-of-sale systems approved by us or on such other types of systems as may be designated by us in the Manual or otherwise in writing ("Pointof-Sale Systems"), which shall be deemed part of your Computer System.
21.1.4 You shall make, from time to time, such upgrades and other changes to the Computer System and Required Software as we may request in writing (collectively, "Computer Upgrades").
21.1.5 You shall comply with all specifications issued by us with respect to the Computer System and the Required Software, and with respect to Computer Upgrades.
You shall also afford us unimpeded access to your Computer System and Required Software as we may request, in the manner, form, and at the times requested by us.
- 21.1.6 In addition to the requirements of Article 4, you shall pay all fees, whether to us or to third party vendor(s), and expenses for technology required by this Agreement for operation of the Franchised Business, including but not limited to, all costs related to the Computer System, Required Software, and Computer Upgrades, digital menu displays, internet access, license fees, help desk fees, and licensing or user-based fees.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the franchise agreement does not specify any limitations on the cost of required computer upgrades. The franchisee is responsible for all costs associated with technology required for the operation of the franchised business. This includes the computer system, required software, and any computer upgrades.
Crave franchisees must use computer-based point-of-sale systems approved by Crave. Franchisees are also obligated to make upgrades and changes to the computer system and required software as requested by Crave in writing. Franchisees must comply with all specifications issued by Crave regarding the computer system, software, and upgrades.
This arrangement means that Crave has the authority to mandate potentially costly computer upgrades at any time, and the franchisee is obligated to pay for them. The FDD does not provide any details on how often these upgrades might be required or what the typical cost range could be. This could pose a financial risk to franchisees if upgrades are frequent or unexpectedly expensive.
Prospective Crave franchisees should carefully consider the potential costs of ongoing technology upgrades and factor this into their financial projections. It would be prudent to discuss with Crave the typical frequency and estimated costs of computer upgrades to better understand the financial implications.