What does the Crave franchisee acknowledge regarding the franchisor's approval of the business location?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.4 You acknowledge that the approval of a particular site for a Franchised Business by us shall not be deemed to be an assurance or guaranty that the Franchised Business will operate successfully or at a profit from such site.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the franchisee acknowledges that Crave's approval of a specific site for the Franchised Business does not guarantee the business's success or profitability at that location. This is outlined in Section 3.4 of the agreement.
This acknowledgement is significant for prospective franchisees because it underscores that while Crave provides site selection assistance, the ultimate responsibility for the performance of the business rests with the franchisee. Site approval is a necessary step, but it is not a foolproof predictor of financial success.
This type of disclaimer is common in franchise agreements. Franchisors typically offer guidance and approval for site selection based on their experience and market analysis, but they cannot guarantee success due to factors beyond their control, such as local market conditions, competition, and the franchisee's management skills. Therefore, franchisees must conduct their own due diligence and assess the suitability of the location for their business.