For a Crave franchise, who is responsible for the expense of locating potential sites?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
2.1 Your Responsibility to Locate a Site
You assume all cost, liability, expense and responsibility for locating, obtaining and developing a site for the Franchised Business within the Designated Territory, and for constructing and equipping the Restaurant at such site. You shall not make any binding commitment to a prospective vendor or lessor of real estate with respect to a site for the Restaurant unless the site is approved by us as set forth below. You acknowledge that the location, selection, procurement and development of a site for the Restaurant is your responsibility; that in discharging such responsibility you shall consult with real estate and other professionals of your choosing, unless we designate a supplier for these services; and that our approval of a prospective site and the rendering of assistance in the selection of a site does not constitute a representation, promise, warranty or guarantee, express or implied, by us that the Franchised Business operated at that site will be profitable or otherwise successful.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the franchisee is responsible for all costs associated with site selection. Specifically, the franchisee assumes all cost, liability, expense, and responsibility for locating, obtaining, and developing a site for the Franchised Business within the Designated Territory, and for constructing and equipping the Restaurant at such site.
This means that prospective Crave franchisees must be prepared to cover expenses related to real estate agents or brokers, travel to potential sites, legal fees for lease review, and any other costs incurred during the site selection process. Crave does offer site selection guidelines and may review the franchisee's site selection for conformity to their standards and criteria for selection and acquisition of sites upon written request for approval. However, this review does not shift the financial burden of site selection from the franchisee to Crave.
It is important to note that the franchisee cannot make any binding commitment to a prospective vendor or lessor of real estate with respect to a site for the Restaurant unless the site is approved by Crave. While Crave's approval signifies that the location meets their minimum criteria, it does not guarantee the franchisee's success or profitability at that location. The franchisee is encouraged to consult with real estate and other professionals of their choosing during the site selection process.