What does the Crave franchisee understand and acknowledge about the business risks involved?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
Pricing We have the right to determine the maximum prices for the goods, products and services offered from your Franchised Business. This may reduce the anticipated profit of your business.
Franchisee acknowledges that it has received the CRAVE Franchising, LLC Franchise Disclosure Document with a complete copy of the Franchise Agreement and all related Attachments and agreements at least fourteen (14) calendar days prior to the date on which the Franchise Agreement was executed. Franchisee further acknowledges that Franchisee has read such Franchise Disclosure Document and understands its contents.
Franchisee acknowledges that it has had ample opportunity to consult with its own attorneys, accountants and other advisors and that the attorneys for Franchisor have not advised or represented Franchisee with respect to the Franchise Agreement or the relationship thereby created.
Franchisee, together with Franchisee's advisers, has sufficient knowledge and experience in financial and business matters to make an informed investment decision with respect to the Franchise granted by the Franchise Agreement.
Franchisee is aware of the fact that other present or future franchisees of Franchisor may operate under different forms of agreement(s), and consequently that Franchisor's obligations and rights with respect to its various franchisees may differ materially in certain circumstances.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, a prospective franchisee acknowledges several aspects regarding the business and its potential risks. The franchisee confirms they received the Franchise Disclosure Document (FDD) and the franchise agreement at least 14 calendar days before signing, indicating they had time to review the documents. They also acknowledge understanding the contents of the FDD.
Furthermore, the franchisee acknowledges they had the opportunity to consult with their own advisors, such as attorneys and accountants, and that Crave's attorneys did not represent them. This highlights the importance of seeking independent legal and financial advice before making a final decision. The franchisee also confirms they possess sufficient knowledge and experience in financial and business matters to make an informed investment decision regarding the Crave franchise.
Additionally, the franchisee acknowledges that other Crave franchisees may operate under different agreements, leading to differing obligations and rights between Crave and its franchisees. This implies that the terms and conditions might not be uniform across all franchises, and it is crucial to understand the specific agreement being offered.
Finally, the FDD highlights a specific risk: Crave retains the right to determine the maximum prices for goods, products, and services offered at the franchised business, which may reduce the anticipated profit of the business. This pricing control is a critical factor for franchisees to consider, as it directly impacts their revenue potential and profitability.