What is the Crave franchisee's obligation to enter into a Franchise Agreement?

According to Crave's 2025 Franchise Disclosure Document, a franchisee's obligation to enter into a Franchise Agreement is highlighted in an addendum required by the State of South Dakota. Specifically, while the payment of the initial franchise fee, development fee, and any other initial payment may be deferred until all material pre-opening obligations are satisfied and the business is open and operating, the franchisee must execute the Franchise Agreement before looking for a site or beginning training. This indicates that signing the Franchise Agreement is a prerequisite for moving forward with site selection and training, even though financial obligations may be deferred.

This requirement ensures that both Crave and the franchisee are formally committed to the franchise relationship before significant resources are invested in site selection and training. For the franchisee, this means understanding and agreeing to the terms of the Franchise Agreement early in the process.

It is important to note that this specific condition is outlined in the addendum for South Dakota. Franchisees in other states may have different requirements regarding the timing of Franchise Agreement execution and initial payments. Therefore, prospective franchisees should carefully review the FDD addenda specific to their state and consult with Crave to understand the exact obligations and timelines for their particular situation.