Is a Crave franchisee required to comply with all applicable laws pertaining to privacy of information?

According to Crave's 2025 Franchise Disclosure Document, franchisees must adhere to all relevant privacy laws. Specifically, Section 21.3 of the FDD states that franchisees must abide by all applicable laws pertaining to privacy of information collected or maintained regarding customers or other individuals and must comply with Crave's standards and policies on privacy. This means a Crave franchisee is not only responsible for understanding and following federal, state, and local laws related to data privacy, but also Crave's specific internal policies.

If there is a conflict between Crave's privacy standards and applicable law, the franchisee is required to comply with the law. In such a case, the franchisee must immediately notify Crave in writing about the conflict and fully cooperate with Crave and its counsel to determine the most effective way to meet Crave's standards within the bounds of the applicable law. This highlights the importance of staying informed about current privacy regulations and maintaining open communication with Crave regarding any compliance challenges.

This requirement ensures that Crave maintains a consistent approach to data privacy across all franchise locations, protecting both the brand's reputation and customer trust. It also places a significant responsibility on the franchisee to stay updated on changing privacy laws and to implement appropriate measures to safeguard customer data. A prospective franchisee should carefully review Crave's privacy policies and standards, and consider the potential costs and resources required to maintain compliance with these regulations.