Does the Crave franchise agreement specify if the survival of terms applies to the Principals of the franchisee?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
granted by the Franchise Agreement.
Initial
- Franchisee is aware of the fact that other present or future franchisees of Franchisor may operate under different forms of agreement(s), and consequently that Franchisor's obligations and rights with respect to its various franchisees may differ materially in certain circumstances.
| Initial |
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- It is recognized by the parties that Franchisor is also (or may become) a manufacturer or distributor of certain products or services under the Marks licensed herein; and it is understood that Franchisor does not warrant that such products or services will not be sold within Franchisee's Territory by others who may have purchased such products or services from Franchisor.
Initial
- BY EXECUTING THE FRANCHISE AGREEMENT, FRANCHISEE AND ANY PRINCIPAL, INDIVIDUALLY AND ON BEHALF OF FRANCHISEE'S AND SUCH PRINCIPAL'S HEIRS, LEGAL REPRESENTATIVES, SUCCESSORS AND ASSIGNS, HEREBY FOREVER RELEASE AND DISCHARGE CRAVE FRANCHISING, LLC AND ANY OF ITS PARENT COMPANY, SUBSIDIARIES, DIVISIONS, AFFILIATES, SUCCESSORS, ASSIGNS AND DESIGNEES, AS WELL AS THEIR DIRECTORS, OFFICERS, EMPLOYEES, AGENTS, AND SHAREHOLDERS FROM ANY AND ALL CLAIMS, DEMANDS AND JUDGMENTS RELATING TO OR ARISING UNDER THE STATEMENTS, CONDUCT, CLAIMS OR ANY OTHER AGREEMENT BETWEEN THE PARTIES EXECUTED PRIOR TO THE DATE OF THE FRANCHISE AGREEMENT, INCLUDING, BUT NOT LIMITED TO, ANY AND ALL CLAIMS, WHETHER PRESENTLY KNOWN OR UNKNOWN, SUSPECTED OR UNSUSPECTED, ARISING UNDER THE FRANCHISE, SECURITIES, TAX OR ANTITRUST LAWS OF THE UNITED STATES OR OF ANY STATE OR TERRITORY THEREOF. THIS RELEASE IS SPECIFICALLY INAPPLICABLE TO ANY CLAIMS ARISING FROM REPRESENTATIONS MADE BY FRANCHISOR IN FRANCHISOR'S FRANCHISE DISCLOSURE DOCUMENT RECEIVED BY FRANCHISEE.
Initial ACKNOWLEDGED: PRINCIPALS: Name: Date:
State Effective Dates
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:
| State | Effective Date |
|---|---|
| Illinois | Pending |
| Indiana | Pending |
| Maryland | Pending |
| Michigan | Pending |
| New York | Pending |
| Virginia | Pending |
| Wisconsin | Pending |
Other states may require registration, filing, or exemption of a franchise under other laws, such as those that regulate the offer and sale of business opportunities or seller-assisted marketing plans.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
Based on the 2025 Crave Franchise Disclosure Document, the franchise agreement includes provisions that extend certain obligations and waivers to the franchisee's principals. Specifically, principals are included in a release of claims against Crave. By executing the Franchise Agreement, the franchisee and any principal individually and on behalf of their heirs, legal representatives, successors, and assigns, release and discharge Crave Franchising, LLC from all claims and demands relating to any agreement executed prior to the date of the Franchise Agreement. This release does not apply to any claims arising from representations made by Crave in its Franchise Disclosure Document.
Additionally, the Franchisee Acknowledgment Statement includes an acknowledgement of the truthfulness of statements as an inducement for Crave to enter into a Franchise Agreement. The document also states that no statement, questionnaire, or acknowledgment signed by a franchisee shall waive any claims under any applicable state franchise law, including fraud in the inducement, or disclaim reliance on any statement made by Crave.
Furthermore, the franchise agreement includes a clause where the franchisee and the franchisee's principal(s) waive any rights and benefits conferred by any applicable provision of law which would invalidate any portion of the release contained within the agreement. They also covenant not to bring any suit, action, or proceeding against any released franchisor party with respect to any franchisee released claim, and they shall defend, indemnify, and hold harmless each of Franchisor Releasees against same. These clauses indicate that certain obligations and responsibilities extend beyond the franchisee to include their principals, suggesting that the survival of terms could apply to them as well.