What is the Crave franchisee's obligation to operate the Franchised Business pursuant to a Franchise Agreement?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
7.4 You have sole responsibility for the performance of all obligations arising out of the operation of your business pursuant to this Agreement, including, but not limited to, the payment when due of any and all taxes levied or assessed by reason of such operation.
7.5 In all public records, in your relationship with other persons, and in any documents, you shall indicate clearly the independent ownership of your business and that the operations of said business are separate and distinct from the operation of a Crave Franchised Business.
7.6 You shall at all times preserve in confidence any and all materials and information furnished or disclosed to you by us and you shall disclose such information or materials only to such of your employees or agents who must have access to it in connection with their employment.
You shall not at any time, without our prior written consent, copy, duplicate, record or otherwise reproduce such materials or information, in whole or in part, nor otherwise make the same available to any unauthorized person.
7.7 You shall comply with all requirements of federal, state and local laws, rules and regulations.
7.8 You shall at no time have the right to sub-franchise any of your Development Rights hereunder.
7.9 In no event shall any Franchised Business be opened for business unless and until a Franchise Agreement for such Franchised Business has been fully executed and the initial franchise fee for such Franchised Business has been fully paid.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, franchisees have sole responsibility for fulfilling all obligations related to operating their business under the Franchise Agreement. This includes, but isn't limited to, paying all due taxes associated with the business's operation.
Crave franchisees must clearly indicate the independent ownership of their business in all public records, interactions, and documents, ensuring it's distinct from Crave's franchised operations. Franchisees are also obligated to maintain the confidentiality of any materials and information provided by Crave, disclosing it only to employees or agents who require access for their work. Duplication or reproduction of these materials without prior written consent from Crave is prohibited.
Furthermore, Crave franchisees must comply with all federal, state, and local laws, rules, and regulations. They are not permitted to sub-franchise any development rights granted to them. A franchised business cannot be opened until a Franchise Agreement is fully executed and the initial franchise fee is paid in full. These stipulations ensure that franchisees understand their responsibilities and operate their Crave business in accordance with legal and brand standards.