Is a Crave franchisee's compliance with Item 8 a guarantee of receiving a new, additional, or successor franchise?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
We do not provide material benefits (including, for example, granting new, additional or successor franchises) to you based on your purchase of particular products or services or your use of designated or approved suppliers. When deciding to grant new, additional or successor franchises, we consider many factors, including your compliance with the requirements described in this Item 8, the breach of which may be in default under your Franchise Agreement. Your compliance with the requirements of this Item 8 does not automatically give you the right to an additional, new or successor franchise.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 26–30)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, a franchisee's compliance with the requirements outlined in Item 8 does not automatically guarantee the right to a new, additional, or successor franchise. Item 8 of the FDD pertains to the restrictions on the sources of products and services that a franchisee must adhere to.
Crave retains the discretion to grant or deny new, additional, or successor franchises based on various factors. While compliance with Item 8 is considered, it is not the sole determinant. A breach of the requirements in Item 8 may result in a default under the Franchise Agreement, indicating the importance of adhering to these restrictions.
This means that even if a Crave franchisee diligently follows all the rules regarding approved suppliers and purchasing arrangements, there is no assurance that they will be awarded additional franchise opportunities. Crave considers multiple factors when making these decisions, and compliance with Item 8 is just one aspect of the overall evaluation. Prospective franchisees should inquire about the other factors Crave considers when awarding new, additional, or successor franchises to fully understand the criteria for expansion within the Crave system.