Is a Crave franchisee allowed to make material alterations or improvements to the franchised business without prior written approval from the franchisor, and under what conditions can approval be withheld?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
ved for sale in writing by us; to refrain from deviating from our standards and specifications without our prior written consent; and to discontinue selling and offering for sale any menu items, products or services which we may, in our sole discretion, disapprove in writing at any time. Notwithstanding the foregoing, you understand and agree that we have the right, in our sole discretion, to grant to certain Crave businesses variances from our standard menu to accommodate regional or local tastes or ingredients, and that nothing in this Agreement requires us to grant to you a similar variance.
- 7.5.3 To maintain in sufficient supply and to use and sell at all times only such food and beverage items, ingredients, other products, materials, merchandise, supplies and paper goods that conform to our standards and specifications; to prepare all menu items in accordance with our recipes and procedures for preparation contained in the Manual or other written directives, including, but not limited to, the prescribed measurements of ingredients; and to refrain from deviating from our standards and specifications by the use or offer of non-conforming items or differing amounts of any items, without our prior written consent.
- 7.5.4 To permit us or our agents, during normal business hours, to remove a reasonable number of samples of food or non-food items from your inventory or from the Franchised Business, without payment therefor, in amounts reasonably necessary for testing by us or an independent laboratory to determine whether such samples meet our then-current standards and specifications. In addition to any other remedies we may have under this Agreement, we may require you to bear the cost of such testing if the supplier of the item has not previously been approved by us or if the sample fails to conform with our reasonable specifications.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, franchisees must obtain prior written consent from Crave before deviating from the franchisor's standards and specifications. This requirement extends to food and beverage items, ingredients, and any other products or materials used in the business. Specifically, franchisees need written approval before using or offering non-conforming items or differing amounts of any items.
Crave maintains the right to grant variances from the standard menu to certain Crave businesses to accommodate regional or local tastes or ingredients. However, the franchise agreement does not require Crave to grant a similar variance to every franchisee. This means that while some locations might be allowed to customize their offerings, others may not, and Crave has the sole discretion to make these decisions.
Furthermore, the FDD states that if a franchisee develops any new concept, process, recipe, product, service, or improvement in the operation or promotion of the Franchised Business, the franchisee is required to promptly notify Crave and provide Crave with all related information. The franchisee must also sign any documents necessary for Crave to obtain full proprietary rights to such improvements, without compensation or any claim of ownership. Crave can then use or disclose such information to other franchisees as it deems appropriate. This clause ensures that any innovation within the franchise network becomes the property of Crave, which can then be shared across the system at Crave's discretion.