Is a Crave franchisee required to be actively involved in the daily operation of their Franchised Business?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
You must designate and always retain an individual to serve as the general manager who will be a full-time employee responsible for the daily operation of the Franchised Business (the "General Manager"). The General Manager must have relevant food service experience, must satisfy our educational and business criteria as provided to you in the Manual or other written instructions, must satisfy the applicable training requirements in the Franchise Agreement, and must meet the qualifications, including completing all training and obtaining all certifications required by us to act as a General Manager. We recommend, but do not require, that you or one of the Principals acts as the General Manager. We do not require you to be actively involved in the daily operation of your Franchised Business, but you must still make sure that your Franchised Business is being operated according to the terms of your Franchise Agreement and the Manual. If you are not actively involved in the daily operation of your Franchised Business, then we may communicate with and rely on the decisions made by your General Manager. The General Manager does not have to own an equity interest in you or the franchise. The General Manager must be responsible for
the supervision and management of the Franchised Business and must devote full time and best efforts to this activity. If the General Manager cannot serve in the position or does not meet the requirements, he or she must be replaced within 30 days after the General Manager stops serving or no longer meets the requirements.
In addition to the General Manager, you must have any assistant managers necessary for the efficient operation of the Franchised Business. All of your managers must have successfully completed our training program and be certified by us to operate your Franchised Business. We do not require that any of your managers have an ownership interest in you. While your Franchised Business is open, you must have at least one certified manager on-site. You must also retain other personnel as are needed to operate the Franchised Business.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 48–49)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, franchisees are not required to be actively involved in the daily operations of their franchised business. However, Crave mandates that franchisees designate and retain a General Manager who is a full-time employee responsible for the daily operation of the Franchised Business.
The General Manager must possess relevant food service experience and meet Crave's educational and business criteria, as outlined in the manual or other written instructions. They must also fulfill the training requirements specified in the Franchise Agreement and meet all qualifications, including completing training and obtaining certifications required by Crave to act as a General Manager. Crave recommends, but does not require, that the franchisee or one of the Principals act as the General Manager.
Even if the franchisee is not actively involved, they are still responsible for ensuring that the Franchised Business operates according to the terms of the Franchise Agreement and the manual. Crave may communicate with and rely on the decisions made by the General Manager if the franchisee is not actively involved. The General Manager is not required to have an equity interest in the franchise and must devote full time and best efforts to supervising and managing the Franchised Business. If the General Manager cannot serve or does not meet the requirements, they must be replaced within 30 days.
In addition to the General Manager, Crave requires franchisees to have assistant managers necessary for efficient operation. All managers must complete Crave's training program and be certified by Crave. At least one certified manager must be on-site while the Franchised Business is open. Franchisees must also retain other personnel needed to operate the Franchised Business.